The Ministry of Finance announced on July 30 that it will issue 17 trillion won in treasury bonds next month, an increase of 1 trillion won from the previous month, through a competitive bidding process.
The issuance will be broken down as follows: 3.3 trillion won in 2-year bonds, 3.6 trillion won in 3-year bonds, 3 trillion won in 5-year bonds, 3 trillion won in 10-year bonds, 400 billion won in 20-year bonds, 2.8 trillion won in 30-year bonds, 800 billion won in 50-year bonds, and 1 trillion won in inflation-linked treasury bonds.
Primary dealers and the general public will have the opportunity to purchase a certain amount of bonds at the winning bid rate through a non-competitive bidding process. The decision on whether to conduct non-competitive purchases will be announced separately, taking market conditions into account.
To enhance liquidity in treasury bonds, the government will also conduct a swap of 3 trillion won between 10-year, 20-year, and 30-year bonds and 5-year benchmark bonds. Additionally, it plans to conduct a buyback of 2 trillion won in maturing bonds due in 2027.
Meanwhile, there will be no issuance of government securities in August. Government securities are short-term bonds issued to cover temporary cash shortages arising from the timing differences between government revenues and expenditures within the fiscal year, and they are used alongside temporary borrowing from the Bank of Korea.
As of this month, the outstanding balance of government securities is 4 trillion won, and there is no outstanding balance of temporary borrowing from the Bank of Korea. The average daily balance from January 1 to July 30 this year is reported to be 13.3 trillion won for government securities and 3.4 trillion won for temporary borrowing.
In August, the government will also issue 1 trillion won in won-denominated foreign exchange stabilization bonds with a one-year maturity through a competitive bidding process, similar to the previous month. A total of 31 institutions, including primary dealers, preliminary primary dealers, and institutions eligible to bid for currency stabilization securities, will participate in the bidding.
The issuance will be broken down as follows: 3.3 trillion won in 2-year bonds, 3.6 trillion won in 3-year bonds, 3 trillion won in 5-year bonds, 3 trillion won in 10-year bonds, 400 billion won in 20-year bonds, 2.8 trillion won in 30-year bonds, 800 billion won in 50-year bonds, and 1 trillion won in inflation-linked treasury bonds.
Primary dealers and the general public will have the opportunity to purchase a certain amount of bonds at the winning bid rate through a non-competitive bidding process. The decision on whether to conduct non-competitive purchases will be announced separately, taking market conditions into account.
To enhance liquidity in treasury bonds, the government will also conduct a swap of 3 trillion won between 10-year, 20-year, and 30-year bonds and 5-year benchmark bonds. Additionally, it plans to conduct a buyback of 2 trillion won in maturing bonds due in 2027.
Meanwhile, there will be no issuance of government securities in August. Government securities are short-term bonds issued to cover temporary cash shortages arising from the timing differences between government revenues and expenditures within the fiscal year, and they are used alongside temporary borrowing from the Bank of Korea.
As of this month, the outstanding balance of government securities is 4 trillion won, and there is no outstanding balance of temporary borrowing from the Bank of Korea. The average daily balance from January 1 to July 30 this year is reported to be 13.3 trillion won for government securities and 3.4 trillion won for temporary borrowing.
In August, the government will also issue 1 trillion won in won-denominated foreign exchange stabilization bonds with a one-year maturity through a competitive bidding process, similar to the previous month. A total of 31 institutions, including primary dealers, preliminary primary dealers, and institutions eligible to bid for currency stabilization securities, will participate in the bidding.
* This article has been translated by AI.
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