Government to Issue 12.1 Trillion Won in Treasury Bonds Next Month

[Asia Economy Reporter Jang Sehee] The Ministry of Economy and Finance announced on the 27th that it plans to issue government bonds worth 12.1 trillion won next month through a competitive bidding process involving professional dealers (PDs) and others.

Government bond professional dealers and the general public can non-competitively subscribe to a certain amount at the highest winning bid rate in the competitive bidding.

If the general public submits a bid through a government bond PD by the day before the bidding, they will be given priority allocation within 20% of the competitive bidding issuance amount excluding the 50-year bonds (a total of 2.42 trillion won).

Each PD company can additionally purchase government bonds within 5-30% of the winning bid amount of the competitive bidding within 3 business days after the winning bid date for each bond maturity.

Each strip PD can purchase strip bonds within 160 billion won per maturity (210 billion won for 10-year and 30-year bonds), up to a maximum of 20 billion won, within 3 business days after the winning bid date.

Each PD company can apply for inflation-linked government bonds within 10% of 100 billion won on the day of and the day after the 10-year bond bidding.

Inflation-linked government bonds can be applied for by each PD within 100 billion won until the day after the 10-year bond bidding, and the general public can apply through PDs within 10 billion won until the day after the 10-year bond bidding.

The government plans to conduct two exchanges totaling 200 billion won, about 100 billion won each, between the 20-year matured bonds and 30-year benchmark bonds, and between the matured inflation-linked bonds and 10-year benchmark bonds, to enhance government bond liquidity.

Meanwhile, the Ministry of Economy and Finance issued a total of 12.631 trillion won in government bonds in February.

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