Bank of Korea to Issue Up to 6.8 Trillion Won in Monetary Stabilization Bonds Next Month

Reduced by 200 Billion Won Compared to Last Month

The Bank of Korea announced on July 23 that it plans to issue up to 6.8 trillion won worth of Monetary Stabilization Bonds next month.

View of the Bank of Korea.

Of this amount, 6.3 trillion won will be issued via competitive bidding, and between 400 billion and 500 billion won will be issued through recruitment bidding.

Monetary Stabilization Bonds are special marketable securities issued by the Bank of Korea when market liquidity surges, such as due to a buoyant stock market or a current account surplus. Alongside Treasury Bonds, they are categorized as government bonds. These securities involve lending money for a specified period, with both principal and interest repaid at maturity.

The schedule for competitive bidding starts with 600 billion won (91-day maturity) on August 3, followed by 2 trillion won (2-year maturity) on August 5, 600 billion won (91-day maturity) on August 10, 700 billion won (1-year maturity) on August 12, 600 billion won (91-day maturity) on August 14, 600 billion won (3-year maturity) on August 19, 600 billion won (91-day maturity) on August 24, and 600 billion won (91-day maturity) on August 31.

The recruitment bidding for 1-, 2-, and 3-year maturities, amounting to 400 billion to 500 billion won, will take place on August 26. The final total and allocation by maturity will be confirmed on August 25, the business day prior to the auction.

The Bank of Korea emphasized the need to check the final auction information, as the issuance plan may change depending on open market operation conditions and the bond market environment; the final information is posted on the business day before each auction.

The Bank of Korea will also conduct early redemption of Monetary Stabilization Bonds next month. On August 7, 400 billion won will be offered to the market, and on August 18, 2.3 trillion won will be redeemed.

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