Government to Conduct 2 Trillion Won Scale National Bond Buyback

Bang Gi-seon, 1st Vice Minister of the Ministry of Economy and Finance, Holds Macroeconomic and Financial Meeting

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Kwon Haeyoung] The government will conduct an emergency buyback worth 2 trillion won on the 30th to stabilize the government bond market.

Bang Giseon, the 1st Vice Minister of the Ministry of Economy and Finance, held a macroeconomic and financial meeting on the 28th to review financial market trends and gave such instructions. The meeting was attended by the Ministry of Economy and Finance, the Financial Services Commission, the Bank of Korea, and the Financial Supervisory Service.

The government’s emergency buyback purchase items will be announced after the market closes on the day, considering the Bank of Korea’s simple purchase items of treasury bonds and market conditions. Earlier, the Bank of Korea also announced a simple purchase of treasury bonds worth 3 trillion won on the same day.

Vice Minister Bang said, "If necessary, we will actively consider market volatility mitigation measures to ease anxiety in the stock and corporate bond markets," and urged, "Please be especially vigilant and make every effort to respond to the market through close cooperation among related agencies."

As concerns about the acceleration of global tightening increase, risk-averse sentiment is spreading throughout global financial markets, including Asia. As of 1:30 p.m. on the day, the KOSPI fell 2.8% and the KOSDAQ dropped 3.5% compared to the previous trading day. The 10-year government bond yield rose by 16 basis points, and the won-dollar exchange rate surpassed 1,440 won during the session.