The Korea Ministry of Economy and Finance plans to issue Korea Treasury Bonds worth approximately 15,000 billion won in May 2023 through competitive bidding.
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Auction Schedule, May 2023 |
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(Unit: KRW billion) |
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Name |
Auction Notice |
Auction Date |
Settlement Date |
Issue Date |
Type |
Volume |
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2Y KTB 03375-2503 (23-3) |
May 3 |
May 9 |
May 11 |
March 10, 2023 |
F1 |
1,900 |
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3Y KTB 04250-2512 (22-13) |
May 2 |
May 8 |
May 9 |
December 10, 2022 |
F |
1,700 |
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3Y KTB 03125-2606 (23-4) |
May 2 |
May 8 |
May 9 |
June 10, 2023 |
P2 |
1,100 |
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5Y KTB 03250-2803 (23-1) |
May 17 |
May22 |
May 23 |
March 10, 2023 |
F |
2,300 |
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10Y KTB 04250-3212 (22-14) |
May 10 |
May 15 |
May 16 |
December 10, 2022 |
F |
1,600 |
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10Y KTB 03250-3306 (23-5) |
May 10 |
May 15 |
May 16 |
June 10, 2023 |
P |
1,100 |
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20Y KTB 03250-4209 (22-11) |
May 18 |
May 23 |
May 24 |
September 10, 2022 |
F |
1,100 |
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30Y KTB 03250-5303 (23-2) |
April 27 |
May 2 |
May 3 |
March 10, 2023 |
F |
3,700 |
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50Y KTB 03500-7209 (22-12) |
May 9 |
May 12 |
May 15 |
September 10, 2022 |
F |
500 |
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Conversion offer |
Conventional |
May 11 |
May 16 |
May 18 |
March 10, 2023 |
F |
200 |
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Inflation-linked |
April 28 |
May 4 |
May 9 |
June 10, 2023 |
F |
100 |
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1. Fungible issue
2. Pre-issuance
* Under a fungible issue system, new KTBs issued within a specified period (three-month period for 2Y KTB, six-month period for 3Y, 5Y and 10Y KTB, one-year period for 20Y and 30Y KTB, and two-year period for KTBi and 50Y KTB) are regarded as the same KTB issue.
1) Non-competitive bids option I
For retail investors, KTBs worth 2,900 billion won (no more than 20% of the offered amount in the auction excluding 50Y KTBs) will be allocated first at the highest accepted bid rate.
2) Non-competitive bids option II
A non-competitive purchasing option II is granted to primary dealers (PD) whereby PDs can make additional purchases of 10-35%* of the accepted bid amount within three business days after the auction.
* Up to 25% of the option is granted to the top-performing PDs, 20% to the 2nd best-performing PDs, 15% to the 3rd best-performing PDs, and 10% to the rest, according to their market-making performances for the last six months. MOEF will grant additional 5-10%p to best performing PDs in the monthly evaluation.
3) Non-competitive bids option III
KTB STRIPS* are supplied on the third business day after the auctions, 221 billion won for 3Y and 5Y KTBs, 271 billion won for 10Y and 30Y KTBs, and 170 billion won for 20Y KTBs. PDs that have obtained the right to purchase these KTB STRIPS can make purchases of up to 20 billion won.
* Purchases are made in a stripped bond type, and the PDs have to meet their obligations of separating interest and principal for their purchases over the next month.
＊Non-competitive option Ⅵ
Details have yet to be decided. If non-competitive option Ⅵ needs to be implemented, the Ministry will make an announcement on May 11 with a detailed plan.
4) Conversion offer
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Date |
KTB to be issued |
KTBs to be purchased |
Amount |
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May 4 10:40-11:00 am |
KTBi 01625-3206 (Maturing on June 10, 2032) |
KTBi 01000-2606 (16-5) KTBi 01750-2806 (18-5) KTBi 01125-3006 (20-5)
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KRW 100 billion |
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May 16 10:40-11:00 am |
30Y KTB 03250-5303 (Maturing on March 10, 2053) |
KTB 01500-3012 (20-9) KTB 02375-3112 (21-11) KTB 02625-3509 (15-6) KTB 02250-3709 (17-5)
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KRW 200 billion |
* Further details will be provided on April 28 and May 11 on the BOK website.
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Source: Ministry of Economy & Finance, Republic of Korea (Source)
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