Ministry of Economy and Finance to Issue 10.5 Trillion Won in Treasury Bonds in October

[Asia Economy Reporter Jang Sehee] The Ministry of Economy and Finance announced on the 30th that it plans to issue 10.5 trillion KRW worth of government bonds in October through a competitive bidding process involving primary dealers (PDs) and others.

According to the Ministry, 2-year bonds (800 billion KRW) will be issued on October 14, 3-year bonds (2 trillion KRW) on October 13, 5-year bonds (1.9 trillion KRW) on October 26, and 10-year bonds (2.1 trillion KRW) on October 19.

On the 29th of the same month, 20-year bonds (450 billion KRW) will be issued, on the 7th, 30-year bonds (2.8 trillion KRW), and on the 18th, 50-year bonds (350 billion KRW) will be issued respectively.

PDs and the general public can acquire a certain amount through a non-competitive subscription method at the highest winning bid rate of each maturity during the competitive bidding.

If the general public submits a bid through PDs by the day before the auction, they will be given priority allocation within a limit of 2.03 trillion KRW, which is 20% of the planned competitive bidding issuance amount, excluding the 50-year bonds. PDs can additionally acquire within 5-30% of the winning bid amount within 3 business days after the auction date.

STRIPS bonds can be acquired up to 20 billion KRW within 3 business days after the auction, within the range of 208 billion KRW for 3-year and 5-year maturities, 258 billion KRW for 10-year and 30-year maturities, and 160 billion KRW for 20-year maturities.

The Ministry plans to purchase government bonds worth a total of 2 trillion KRW once before maturity to alleviate refinancing burdens caused by concentration of maturities at specific points.

Additionally, to increase liquidity of government bonds, an exchange of about 300 billion KRW will be conducted between elapsed 10-year and 20-year bonds and benchmark 30-year bonds.

Meanwhile, the issuance scale of government bonds in September was recorded at 11.467 trillion KRW (nominal bonds 11.367 trillion KRW, inflation-linked bonds 100 billion KRW).

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