Ministry of Economy and Finance to Issue KRW 600 Billion April Treasury Bonds via Non-Competitive Bidding

[Sejong=Asia Economy Reporter Son Seon-hee] The Ministry of Economy and Finance announced on the 23rd that it plans to issue 600 billion KRW worth of government bonds this month through a non-competitive subscription method.

The non-competitive subscription method involves pre-announcing the issuance volume and issuance interest rate. Government Bond Primary Dealers (PDs) can bid for demand volumes by maturity. The awarded volume is allocated proportionally to each PD's bid volume within the pre-announced issuance volume range. The 600 billion KRW government bonds scheduled for issuance this month will be divided equally into 300 billion KRW each for 2-year and 3-year maturities.

PDs are divided into two groups per maturity based on last month's mandatory performance evaluation results. Group 1 consists of all 17 PDs bidding, with the scheduled issuance amount being 60% of the issuance volume for the respective maturity. Group 2 consists of the top 10 government bond PDs based on the previous month's mandatory performance evaluation results, bidding for 40% of the issuance volume for the respective maturity.

The issuance interest rate by maturity will be separately announced at 10:20 AM on the bidding day, the 30th, considering market conditions such as the yield on outstanding bonds.

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