MoEF to Issue 8 Trillion Won in Government Bonds in November... Plans to Buy 2 Trillion Won in Bonds

[Sejong=Asia Economy Reporter Son Seonhee] The Ministry of Economy and Finance announced on the 28th that it plans to issue a total of 8 trillion won worth of government bonds next month through a competitive bidding method involving professional dealers (PDs) and others.

The issuance includes 600 billion won of 2-year bonds, 1 trillion won of 3-year bonds, 1.3 trillion won of 5-year bonds, 1.5 trillion won of 10-year bonds, 400 billion won of 20-year bonds, 2.8 trillion won of 30-year bonds, and 400 billion won of 50-year bonds. In addition to the competitive bidding method, PDs and the general public can purchase a certain amount of bonds at the highest winning bid rate of each maturity during the competitive bidding through a non-competitive subscription method.

Also, if the general public submits a bid through a professional dealer by the day before the bidding, they will be given priority allocation within 20% (1.52 trillion won) of the planned competitive bidding issuance amount. However, 50-year bonds are excluded.

Each professional dealer can additionally purchase between 5% and 30% of the winning bid amount from the competitive bidding within 3 business days after the winning date.

Each strip professional dealer can purchase up to 20 billion won within the range of 208 billion won for 3- and 5-year bonds, 258 billion won for 10- and 30-year bonds, and 160 billion won for 20-year bonds within 3 business days after the winning date.

Furthermore, the Ministry of Economy and Finance announced plans to purchase government bonds worth 2 trillion won once before maturity to ease refinancing burdens caused by maturity concentration at specific points.

To enhance government bond liquidity, exchanges of about 100 billion won between inflation-linked bond elapsed issues and inflation-linked bond benchmark issues, and about 200 billion won between 10-year and 20-year elapsed issues and 30-year benchmark issues will be conducted respectively.

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