Ministry of Economy and Finance to Issue KRW 14.5 Trillion in March Treasury Bonds... 3-Year Bond Yield at 2.48%

[Asia Economy Sejong=Reporter Kwon Haeyoung] The Ministry of Economy and Finance announced on the 3rd that it will issue government bonds worth 14.5 trillion won in March through a competitive bidding process.

This amount is about 4.818 trillion won less than the government bond issuance scale in February (19.318 trillion won). The issuance volume by maturity is ▲ 2-year bonds 1 trillion won ▲ 3-year bonds 2.6 trillion won ▲ 5-year bonds 2.8 trillion won ▲ 10-year bonds 2.9 trillion won ▲ 20-year bonds 700 billion won ▲ 30-year bonds 4 trillion won ▲ 50-year bonds 500 billion won. Inflation-linked government bonds will also be issued at a scale of 103 billion won.

The Ministry of Economy and Finance plans to conduct an exchange of about 100 billion won between inflation-linked bonds that have passed their maturity and benchmark inflation-linked bonds next month to improve liquidity of government bonds. An exchange of about 200 billion won between 10-year and 20-year matured bonds and 30-year benchmark bonds is also planned.

Looking at the government bond issuance interest rates in February, the 2-year bonds recorded 2.160~2.240%, 3-year bonds 2.320%, 5-year bonds 2.470~2.480%, and 10-year bonds 2.720%, showing an upward trend. When bond issuance increases in the market, government bond prices fall and government bond yields rise. This raises market interest rates, which can lead to increased interest burdens for households and businesses.

The National Assembly passed an additional supplementary budget (supplementary budget) of 16.9 trillion won on the 21st of last month and decided to issue government bonds worth 11.3 trillion won to secure funding. The government stated that it will divide the volume as evenly as possible by month to reduce the burden on the government bond market.

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