Exchange Designates Final Settlement Bond for September 2021 Treasury Futures

Designation of a Total of 7 Final Payment Standard Bonds

[Asia Economy Reporter Gong Byung-sun] The Korea Exchange announced on the 16th that it has designated the final settlement benchmark bonds for the September 2021 Treasury bond futures to be traded from the 17th.

The final settlement benchmark bonds for the 3-year Treasury bond futures September 2021 contract (KTB3F2109) are three issues: Treasury 00875-2312 (20-8), Treasury 01000-2306 (20-3), and Treasury 01250-2603 (21-1). Their respective coupon rates are 0.875%, 1.000%, and 1.250%.

The final settlement benchmark bonds for the 5-year Treasury bond futures September 2021 contract (KTB5F2019) are two issues: Treasury 01250-2603 (21-1) and Treasury 01125-2509 (20-6), with coupon rates of 1.250% and 1.125%, respectively.

The final settlement benchmark bonds for the 10-year Treasury bond futures September 2021 contract (KTB10F2019) are two issues: Treasury 01500-3012 (20-9) and Treasury 01375-3006 (20-4), with coupon rates of 1.500% and 1.375%, respectively.

Treasury bond futures are derivatives based on Treasury bonds with a face value of 100 won and a coupon rate of 5%. Since Treasury bond futures are not actual existing Treasury bonds, the exchange combines already issued Treasury bonds that closely resemble the underlying asset; these bonds are the final settlement benchmark bonds.

The spot yields for each final settlement benchmark bond are calculated by the Korea Financial Investment Association twice daily at 11:30 AM and 4:00 PM. The calculated spot yields are published on the Korea Financial Investment Association’s website, KOSCOM’s check terminals, and Yonhap Infomax, among others.

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