The government plans to issue Korea Treasury Bonds (KTBs) worth approximately 5.7 trillion won next month through auctions.
The Ministry of Strategy and Finance announced on June 27 its plans for KTB issuance in July 2019 and results for KTB issuance in June. It will issue 3-year KTBs worth 1.15 trillion won (US$994.38 million), 5-year KTBs worth 1.15 trillion won (US$994.38 million), 10-year KTBs worth 1.13 trillion won (US$977.09 million), 20-year KTBs worth 500 billion won (US$432.34 million) and 30-year KTBs worth 1.16 trillion won (US$1 billion).
The government has decided to allocate KTBs to regular citizens first within 1.14 trillion won (US$985.73 million), or 20 percent of the scheduled amount, when they participate in the bidding.
Each primary dealer (PD) can additionally acquire KTBs within 5 percent to 30 percent of its winning bid within three business days after the auction day.
The government is planning to supply up to 160 billion won (US$138.35 million) worth of Separate Trading of Registered Interest and Principal of Securities (STRIPS) KTBs by period of maturity. It will issue 10-year and 30-year STRIPS KTBs worth 210 billion won (US$181.58 million). STRIPS PD can purchase up to 20 billion won (US$17.29 million) worth of the bonds.
The ministry will purchase KTBs worth 2.2 trillion won in total on two separate occasions and exchange KTBs worth 200 billion won (US$172.94 million) in total on two separate occasions.
Meanwhile, a total of 10.55 trillion won (US$9.12 billion) worth of KTBs was issued in June, including 10.52 trillion won (US$9.09 billion) of nominal bonds and 30 billion won (US$25.94 million) of inflation indexed bonds.