Ministry of Economy and Finance to Issue KRW 13.9 Trillion Treasury Bonds via Competitive Bidding on February

Announcement of February 2021 Treasury Bond Issuance Plan and January Treasury Bond Performance
Priority Allocation of 2.63 Trillion KRW Limit Excluding 50-Year Bonds for General Bidders

February 2021 Government Bond Issuance Schedule. (Source: Ministry of Economy and Finance)

[Asia Economy Reporter Moon Chaeseok] The government will issue KRW 13.9 trillion worth of government bonds next month through a competitive bidding process involving professional dealers (PDs).

The Ministry of Economy and Finance announced on the 28th the "February 2021 Government Bond Issuance Plan and January Government Bond Issuance Performance" containing this information.

According to the issuance plan, KRW 700 billion of 2-year government bonds will be issued on the 15th of next month, and KRW 3 trillion of 3-year government bonds will be issued on the 9th.

On the 23rd of next month, KRW 2.7 trillion of 5-year bonds and on the 16th, KRW 2.9 trillion of 10-year bonds will be issued in an integrated manner.

KRW 750 billion of 20-year bonds will be issued on the 24th of next month, and KRW 3 trillion of 30-year bonds will be issued on the 2nd, both in an integrated manner.

KRW 100 billion of inflation-linked government bonds will be issued on the 22nd of next month in an integrated manner.

If the general public participates in the bidding, 20% of the competitive bidding issuance amount excluding 50-year bonds, which is KRW 2.63 trillion, will be preferentially allocated.

Each government bond PD company can additionally purchase within 5-30% of the competitive bidding winning amount within 3 business days after the winning date for each government bond maturity.

STRIPS bonds, which separate principal and interest, can be purchased by STRIP PDs up to KRW 20 billion within the range of KRW 208 billion for 3-year and 5-year bonds, KRW 258 billion for 10-year and 30-year bonds, and KRW 160 billion for 20-year bonds.

To enhance liquidity, a bond exchange of about KRW 300 billion will be conducted between the 20-year elapsed issue and the 30-year benchmark issue.

Meanwhile, the total government bond issuance amount last month was KRW 15.327 trillion. KRW 15.227 trillion was nominal bonds, and KRW 100 billion was inflation-linked bonds.