January Bond Issuance 64 Trillion Won... 19.8 Trillion Won Increase Compared to Last Month

[Asia Economy Reporter Junho Hwang] The Korea Financial Investment Association announced on the 8th through the January over-the-counter (OTC) bond market trends that the total bond issuance amount last month was recorded at 64.3 trillion won, an increase of 19.8 trillion won compared to the previous month.

Government bonds were issued at 19 trillion won, increasing by 11.3 trillion won from the previous month, and financial bonds were issued at 18.1 trillion won, up by 4.1 trillion won. Corporate bonds were issued at 7.4 trillion won, an increase of 3.3 trillion won compared to the previous month, as strong companies' funding demand continued.

As of the end of January, the outstanding domestic bond balance was 2,285.9 trillion won, a net increase of 25 trillion won compared to the previous month. Considering maturity repayments, the balance of domestic bonds held by foreigners was 151.5583 trillion won as of the end of January, an increase of 1.4558 trillion won.

Interest rates rose in the mid- to long-term due to concerns over supply and demand caused by the inauguration of the Biden administration and large-scale economic stimulus measures leading to U.S. interest rate increases, as well as discussions on the 4th disaster relief fund and compensation system for self-employed losses.

OTC bond trading volume increased by 69.7 trillion won compared to the previous month to 455.5 trillion won due to increased issuance scale and interest rate volatility, and the average daily trading volume recorded 22.8 trillion won, up 5.2 trillion won from the previous month. In the same month, CD issuance amount increased by 645 billion won compared to the previous month due to increased issuance by commercial banks, totaling 2.12 trillion won (19 cases in total).

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