225.7 Trillion Won in Treasury Bonds to Be Issued Next Year...Down 500 Billion Won from This Year

The government has finalized the total issuance of Treasury bonds for next year at 225.7 trillion won.

On December 26, the Ministry of Economy and Finance announced that it had confirmed the "2026 Treasury Bond Issuance Plan" based on projections for next year's budget and market conditions. The annual limit for Treasury bond issuance next year is 500 billion won less than this year's issuance volume.

The net increase in issuance will be 109.4 trillion won, which is 2.8 trillion won less than this year's 112.2 trillion won. The amount for refinancing existing bonds will be 116.2 trillion won, which is 2.3 trillion won more than this year's 113.9 trillion won.

Taking into account the early execution of next year's fiscal spending, the government plans to issue a larger volume in the first half of the year. Between 55% and 60% of the total volume will be allocated to the first half, with 27% to 30% of the total volume assigned to the first quarter alone.

By maturity, short-term bonds (2- and 3-year) will account for 35% ±5%, medium-term bonds (5- and 10-year) for 30% ±5%, and long-term bonds (20-, 30-, and 50-year) for 35% ±5%. To flexibly respond to market uncertainties, the management target range for each maturity segment has been set at ±5 percentage points.

The Ministry of Economy and Finance stated, "Taking the inclusion in the World Government Bond Index (WGBI) as an opportunity, we will improve the Treasury bond market infrastructure so that next year can mark a new era for the market, and we will strengthen the risk management system in response to the market’s growth."

They added, "We also plan to promote improvements to the Primary Dealer (PD) system, such as fundamentally expanding the demand base for Treasury bonds and enhancing the development of the Treasury bond market."

This content was produced with the assistance of AI translation services.