Government Issues KRW 14.5 Trillion of Government Bonds in May

The Ministry of Strategy and Finance announced on the 29th that it plans to issue 14.500 trillion won worth of government bonds next month in a competitive bidding method involving professional dealers (PD) and others.

In addition to the competitive bidding method, in the non-competitive acquisition method, professional dealers and the general public can acquire a certain amount at the highest winning bid rate at the time of the competitive bidding for each delinquency.

If the general public submits a bid through a specialized dealer by the day before bidding, it will be allocated first within the range of 20% (total of 2.82 trillion won) of the expected competitive bid.Each specialized dealer can acquire additional acquisitions within the range of 5 to 35% of the winning bid for competitive bidding within 3 business days after the successful bid date.

Each strip dealer can acquire up to 20 billion won in the range of 280 billion won for 3 and 5 years, 258 billion won for 10 and 30 years, and 160 billion won for 20-year products on 3 business days after the successful bid date.

Recruitment Method Through the non-competitive takeover system, each specialized dealer can take over a certain amount of KTBs according to the interest rate announced on the day of the bidding date (May 28).

In addition, the Ministry of Knowledge Economy announced that it plans to exchange 200 billion won between 10-year, 20-year old and 30-year index stocks, and 100 billion won between inflation and inflation index stocks to improve the liquidity of KTBs.
◇ Date of issuance of KTBs in May 2021 (Unit: KRW 100 million).