Government Plans to Issue 12.9 Trillion KRW in Treasury Bonds in September

[Asia Economy Reporter Kwangho Lee] The Ministry of Economy and Finance announced on the 27th that it will issue government bonds worth 12.9 trillion won next month through a competitive bidding process.

The issuance amounts by maturity are 3.2 trillion won for 3-year bonds, 2.4 trillion won for 5-year bonds, 3.05 trillion won for 10-year bonds, 1.1 trillion won for 20-year bonds, and 3.15 trillion won for 30-year bonds.

Government bond primary dealers (PDs) and the general public can non-competitively subscribe to a certain amount at the highest winning bid rate of the competitive bidding.

If the general public submits a bid form through a government bond primary dealer by the day before the bidding, they will be given priority allocation within 20% (2.58 trillion won) of the planned competitive bidding issuance amount, excluding 50-year bonds.

Government bond primary dealers can additionally subscribe within 10-35% of the winning bid amount of the competitive bidding within three business days after the winning day.

Strip bonds, which separate principal and interest, can also be subscribed to by each primary dealer up to a certain amount.

In addition, government bond primary dealers can apply for inflation-linked bonds within 10% of 100 billion won on the day of and the day after the 10-year bond bidding. The general public can apply through PDs within 10 billion won until the day after the 10-year bond bidding.

The Ministry of Economy and Finance also plans to purchase government bonds maturing before maturity worth 2 trillion won to prevent concentration of bond maturities at a specific point in time. To improve liquidity, exchanges between matured inflation bonds and inflation bond benchmark bonds will also be conducted twice, totaling 100 billion won each time.

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