Issuance of Government Bonds Worth 11.1 Trillion Won Next Month

[Asia Economy Reporter Joo Sang-don] The government will issue government bonds worth 11.1 trillion won next month.

On the 30th, the Ministry of Economy and Finance announced that it plans to issue 11.1 trillion won in government bonds through a competitive bidding process involving professional dealers (PDs).

The Ministry plans to start with 2.2 trillion won in 3-year bonds, followed by 2.1 trillion won in 5-year bonds, 2.7 trillion won in 10-year bonds, 650 billion won in 20-year bonds, 2.7 trillion won in 30-year bonds, and 750 billion won in 50-year bonds.

If the general public submits bids through government bond professional dealers by the day before the bidding, they will be given priority allocation within 2.07 trillion won, which is 20% of the competitive bidding issuance amount excluding the 50-year bonds. Each PD company can additionally purchase government bonds within 5-30% of the competitive bidding winning amount within 3 business days after the winning date for each bond maturity.

For inflation-linked government bonds, each PD company can apply within 10% of 100 billion won during one hour from 2:30 p.m. on the 10-year bond bidding day, and from 9 a.m. to 3:30 p.m. the following day. The general public can apply through PD companies within 10 billion won (10% of the inflation-linked government bonds issuance amount for the month) until the day after the 10-year bond bidding day.

Additionally, the Ministry plans to conduct an exchange between matured inflation-linked bonds and 10-year benchmark bonds worth 100 billion won to improve government bond liquidity.

Meanwhile, this month, a total of 12.102 trillion won was issued, including 11.902 trillion won in nominal bonds and 200 billion won in inflation-linked bonds.

This content was produced with the assistance of AI translation services.