This Year, KR Treasury Bonds Worth 45.4 Trillion Won Mature... Next Year and the Year After to Reach 60 Trillion Won Range
Ministry of Economy and Finance to Publish 'Government Bonds 2020' on the 5th
[Asia Economy Reporter Jang Sehee] The amount of government bonds maturing this year is estimated to reach around 45 trillion won. It is projected to reach around 60 trillion won next year and the year after.
On the 5th, the Ministry of Economy and Finance published the government bond white paper "Government Bonds 2020," which introduces trends in the government bond market and major government policies.
According to the white paper, as of the end of last year, the scale of government bond maturities is 45.406 trillion won in 2021, 60.7275 trillion won in 2022, and 68.9614 trillion won in 2023.
Park Jaejin, head of the government bond division at the Ministry of Economy and Finance, stated, "The scale of maturities this year is similar to last year, but the maturities next year and the year after are large," adding, "This is due to the increased issuance of 10-year bonds used as benchmark bonds."
He also explained, "To mitigate refinancing risk, we proactively dispersed the maturing amounts through buybacks (early redemption) in the second half of last year."
The Ministry of Economy and Finance issued a total of 174.5 trillion won in government bonds last year, an increase of 72.8 trillion won compared to the previous year, due to increased fiscal demand such as four supplementary budgets in response to the COVID-19 crisis.
Last year, foreign investors' net purchases of government bonds reached 26.5 trillion won, the highest ever.
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Meanwhile, government bond yields showed high volatility in the first half of last year due to global financial instability but stabilized downward after April. However, in the second half, yields rose due to supply and demand burdens from four supplementary budgets and global interest rate increases influenced by U.S. stimulus measures.
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