Introduction of 30-Year Government Bond Futures After 16 Years: "A Stepping Stone for the Development of the Government Bond Market"

The Ministry of Economy and Finance opened the 30-year government bond futures market on the 19th. This is an achievement 16 years after introducing the 10-year government bond futures in October 2008.

Kim Eon-seong, Director General of Fiscal Management at the Ministry of Economy and Finance, stated at the listing ceremony held at the Korea Exchange Seoul office, "With the listing of the 30-year government bond futures, we have completed the full range of futures products from short-term to long-term and ultra-long-term bonds, laying another stepping stone for the development of the government bond market."

Government bond futures refer to transactions in which standardized government bonds are agreed to be bought or sold at a predetermined price at a specific future date. The 3-year futures were introduced in March 1999, followed by the 5-year futures in 2003.

The introduction of the 30-year futures is expected not only to provide an effective means to manage interest rate risk associated with ultra-long-term government bond investments but also to contribute to the activation of ultra-long-term government bond trading and smooth issuance.

Director Kim said, "The government will actively support the Korea Exchange to ensure the 30-year government bond futures quickly settle in the market. In addition to operating the market maker system and temporarily exempting transaction fees, we will reflect the 30-year government bond futures trading performance in the evaluation of government bond specialist dealers and consider additional measures if necessary."

He also stated that efforts to ensure the stable issuance and liquidity enhancement of the 30-year government bond, which serves as the underlying asset for the 30-year government bond futures, will continue. Director Kim said, "Starting this year, we will absorb less liquid outstanding bonds and expand the monthly exchange scale for newly supplying 30-year benchmark bonds to 500 billion KRW. If necessary, we will actively utilize the reissuance system to additionally supply items with high market demand or insufficient volume among outstanding bonds."

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