By Susanna Moon
Chicago, Oct. 4 – The Ministry of Finance of Korea took in KRW 1.1 trillion of bids for its 50-year treasury bonds at a weighted average accepted rate of 1.535%.
The rate will be determined by adding 4 basis points to the average 10-year yield during the three business days before the settlement date of Oct. 11, according to a government notice.
The bids received ranged from 1.4% to 1.6%. The bid rate ranged from a 10-year treasury bond yield of 1.495% minus 9.5 bps to plus 10.5 bps.
Proceeds will be used to enhance the government’s ability to raise funds and to manage treasury bonds, to improve long-term fiscal planning and to support the development of ultra long-term financial assets.
“The amount offered was higher than expected and the bid rates lower than expected, reflecting the strong demand for ultra long-term KTB,” according to the notice.
The amount offered was KRW 1.67 trillion.
| Issuer: | Ministry of Finance of Korea
|
| Issue: | Treasury bonds
|
| Amount: | KRW 1.1 trillion
|
| Maturity: | 50 years
|
| Coupon: | 10-year yield average plus 4 bps
|
| Average accepted rate: | 1.535%
|
| Settlement date: | Oct. 11
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