The February auction plan is up 2 trillion won from January’s 16 trillion won.
Planned issuance by maturity is: 3.1 trillion won in 2-year notes, 3.1 trillion won in 3-year notes, 3.0 trillion won in 5-year notes, 2.6 trillion won in 10-year notes, 500 billion won in 20-year bonds, 4.7 trillion won in 30-year bonds, 900 billion won in 50-year bonds and 100 billion won in inflation-linked Treasury bonds. Primary dealers and individual investors may purchase set amounts on a noncompetitive basis at the auction’s winning yield for each maturity.
To support liquidity in the Treasury market, the ministry will also conduct a swap of about 500 billion won between off-the-run 10-year, 20-year and 30-year issues and the 30-year benchmark issue.
The government uses short-term fiscal bills — which must be repaid within the fiscal year — and temporary borrowing from the Bank of Korea to cover brief funding gaps caused by timing mismatches between revenue and spending. In February, it plans to issue 10 trillion won in fiscal bills to support smooth budget execution.
Fiscal bills will be sold through competitive auctions to 32 institutions, including Monetary Stabilization Bond auction participants, Treasury primary dealers, preliminary primary dealers and institutions that manage Treasury funds.
The ministry also plans to issue 1.2 trillion won in one-year, won-denominated foreign exchange stabilization bonds through competitive auctions involving the same 32 institutions, including primary dealers, preliminary primary dealers and eligible Monetary Stabilization Bond auction participants.
* This article has been translated by AI.
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