Government to Issue 50-Year Treasury Bonds Monthly Starting May

[Sejong=Asia Economy Reporter Son Seonhee] The government has decided to issue 50-year government bonds, which were regularly issued every even month, on a monthly basis starting from May.

The Ministry of Economy and Finance announced on the 1st, "This is to enhance the predictability of issuance volumes by maturity of government bonds and to improve the timeliness of investment planning and execution by government bond investment institutions." The monthly issuance volume will be flexibly adjusted considering the already established government bond issuance plan (around 4 to 5 trillion KRW this year).

This month, a total of 14.5 trillion KRW worth of government bonds will be issued through a competitive bidding method involving primary dealers (PDs) and others.

In addition to the competitive bidding method, PDs and the general public can participate through a non-competitive subscription method, purchasing a certain amount at the highest winning bid rate from the competitive bidding. If the general public submits a bid through a PD by the day before the bidding, they will be given priority allocation within 20% (total 2.76 trillion KRW) of the planned competitive bidding issuance amount. The 50-year government bonds are excluded from this.

For PDs, within 3 business days after the winning bid date, they can additionally subscribe within 5 to 35% of the competitive bidding winning bid amount.

Furthermore, the Ministry of Economy and Finance stated that to enhance liquidity of government bonds, an exchange of about 200 billion KRW will be conducted between matured 10-, 20-, and 30-year bonds and the 30-year benchmark bonds.

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