Government: "Volatility in the government bond market poses financial and real economy risks... Actively responding to stabilize the market"

Government Bond Market Review Meeting

[Sejong=Asia Economy Reporter Son Seonhee] The government announced on the 11th that it plans to actively respond to stabilize the government bond market in the future, as increased volatility in the government bond market could act as a risk factor for the recovery of the financial market and the real economy.

On the afternoon of the same day, Ando Geol, Vice Minister of Strategy and Finance, held a 'Government Bond Market Review Meeting' at the Government Seoul Office with representatives of major government bond market investment institutions and government bond market experts, stating, "We will flexibly adjust the monthly and annual issuance volume of government bonds according to market supply and demand conditions," and added, "We will closely monitor market conditions and, in case of increased volatility, promptly implement market stabilization measures in cooperation with related institutions such as the Bank of Korea."

Vice Minister An evaluated the recent economic flow, saying, "It is showing a strong recovery trend due to improved external conditions," and stated, "We will continue the active role of fiscal policy." Emphasizing the importance of managing the government bond market stably to support such fiscal policy, he explained, "Although market volatility increased due to the sharp rise in U.S. interest rates at the beginning of the year, the market has recently stabilized thanks to the easing of U.S. interest rates and market stabilization measures by the government and the Bank of Korea."

However, he urged, "It is necessary to proactively respond to potential domestic and international risks such as recent government bond market supply and demand conditions, future global inflation concerns, and caution over the early normalization of accommodative monetary policy."

Vice Minister An also emphasized the steady implementation of the 'Government Bond Market Capacity Enhancement Measures' announced last October and announced plans to actively discover additional institutional improvement tasks to promote government bond investment through the 'Government Bond Research Advisory Group' launched in February this year. He added that communication with market participants and experts will also be strengthened in this regard.

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