MoEF to Issue 5.7 Trillion Won in December Treasury Bonds... To Buy Back 3.3 Trillion Won Before Maturity

[Asia Economy Reporter Kwangho Lee] The Ministry of Economy and Finance announced on the 26th that it plans to issue government bonds worth 5.7 trillion KRW in December through a competitive bidding process.

The issuance schedule includes 1.2 trillion KRW of 3-year government bonds on December 1, 1.05 trillion KRW of 5-year bonds on the 8th, 1.35 trillion KRW of 10-year bonds on the 15th, 400 billion KRW of 20-year bonds on the 22nd, 1.35 trillion KRW of 30-year bonds on the 2nd, and 350 billion KRW of 50-year bonds on the 14th.

In addition to the competitive bidding method, the general public can purchase a certain amount through a non-competitive subscription method at the highest winning bid rate for each maturity during the competitive bidding.

If the general public submits a bid form through a government bond specialist dealer by the day before the bidding, they will be given priority allocation within 20% (a total of 1.07 trillion KRW) of the scheduled competitive bidding issuance amount, excluding the 50-year bonds.

The Ministry of Economy and Finance plans to purchase government bonds twice, totaling 3.3 trillion KRW, before maturity to alleviate refinancing burdens caused by maturity concentration at specific points.

To enhance government bond liquidity, a government bond exchange will be conducted between the 20-year elapsed issue and the 30-year benchmark issue, amounting to 100 billion KRW.

Meanwhile, the issuance scale of government bonds in November was approximately 16.1259 trillion KRW. Of this, nominal bonds accounted for 16.061 trillion KRW, and inflation-linked bonds accounted for 64 billion KRW, respectively.

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