Government to Issue 50-Year Treasury Bonds Monthly Starting May... 14.5 Trillion Won in Treasury Bonds This Month

[Asia Economy Reporter Dongwoo Lee] The Ministry of Economy and Finance announced on the 1st that it will start issuing 50-year government bonds every month from next month, instead of every even month as before.

The Ministry explained that this measure aims to enhance the predictability of issuance volumes by maturity and improve the timeliness of investment institutions' planning and execution.

The monthly issuance volume will be flexibly adjusted considering the levels presented in last year's annual government bond issuance plan.

Additionally, the Ministry will issue a total of 14.5 trillion KRW worth of government bonds this month, including the 50-year bonds, through a competitive bidding process involving primary dealers (PDs) and others.

Besides competitive bidding, a certain amount can be acquired through non-competitive bidding at the highest winning bid rate for each maturity.

For the general public, priority allocation will be made within 20% of the competitive bidding issuance amount, excluding the 50-year bonds.

Primary dealers can additionally acquire between 5% and 35% of the competitive bidding winning amount within three business days after the winning date.

Primary dealers can also acquire a certain amount of government bonds at the announced rate on the bidding day through the non-competitive bidding system under the recruitment method.

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