S. Korea to scale down issuance of short-term Treasuries in Nov. to stabilize bond market

SEOUL, Oct. 28 (Yonhap) -- South Korea will scale down the issuance of short-term Treasuries in November and buy back bonds, if necessary, to stabilize the country's borrowing market, a senior finance ministry official said Thursday.

On Wednesday, bond prices fell sharply, with the yield on state bonds with a maturity of three years surging to a three-year high amid jitters over inflation and global tapering of stimulus measures.

Vice Finance Minister Ahn Do-geol said at a meeting on state finance that the government will sharply reduce the issuance of Treasuries, mostly those with short-term maturities, when it announces its bond issuance plan later in the day for November.

He added the government will keep an eye on the bond market going forward and consider taking such preemptive measures as emergency buybacks, if necessary, as part of efforts to stabilize the state bond market in close coordination with the Bank of Korea, the country's central bank.

kokobj@yna.co.kr
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