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(LEAD) S. Korea to scale down state bond issuance in Nov.

All News 17:25 October 28, 2021

(ATTN: RECASTS throughout with details; CHANGES headline)

SEOUL, Oct. 28 (Yonhap) -- South Korea plans to sharply scale down its issuance of state bonds in November, the finance ministry said Thursday, as it seeks to ease market volatility.

The government plans to sell 8 trillion won (US$6.8 billion) worth of state bonds next month, down from 12.5 trillion won worth of bonds sold this month, according to the ministry.

The reduction came after Vice Finance Minister Ahn Do-geol said that the government will scale down the issuance of state bonds, mostly those with short-term maturities, for November in a bid to ease volatility in the bond market.

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.

The central bank earlier said that it will also reduce the issuance of monetary stabilization bonds in November to improve investors' sentiment and ease market volatility.

The finance ministry said that it will issue 600 billion won in Treasuries with a two-year maturity, 1 trillion won in Treasury bonds with a maturity of three years and 1.3 trillion won in five-year government bonds.

The sales of longer-dated bonds will include 2.8 trillion won in 30-year Treasury notes and 400 billion won in state debts with a maturity of 50 years, according to the ministry.

kokobj@yna.co.k
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