June 2020 Treasury Bond Issuance Plan
The Ministry of Economy and Finance plans to issue Korea Treasury Bonds worth approximately 13,400 billion won in June 2020 through competitive bidding.
June 2020 Auction Schedule
(KRW billion)
|
Name
|
Auction Notice
|
Auction Date
|
Settlement Date
|
Issue Date
|
Type1
|
Volume
|
|
3Y KTB 01000-2306
|
May 28
|
June 1
|
June 2
|
June 10, 2020
|
F
|
2,950
|
|
5Y KTB 01500-2503
|
June 3
|
June 8
|
June 9
|
March 10, 2020
|
F
|
2,600
|
|
10Y KTB 01375-3006
|
June 10
|
June 15
|
June 16
|
June 10, 2020
|
F
|
3,150
|
|
20Y KTB 01125-3909
|
June 17
|
June 22
|
June 23
|
September 10, 2019
|
F
|
850
|
|
30Y KTB 01500-5003
|
May 28
|
June 2
|
June 3
|
March 10, 2020
|
F
|
3,100
|
|
50Y KTB 02000-6809
|
June 9
|
June 12
|
June 15
|
September 10, 2018
|
F
|
750
|
1 F = fungible issue, P = pre-issuance
1) Non-competitive bids option I
For retail investors, KTBs worth 2,530 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 (but the bidding period is expanded to Friday if the D+3 date falls on Thursday).
* 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 regularly supplied for up to 160 billion won for each maturity (210 billion won for 10Y and 30Y KTBs) on the third business day after the auctions. PDs that have obtained the right to purchase these KTB STRIPS can make purchases of up to 20 billion won.
* The option is granted according to the outcomes of monthly evaluation conducted in the previous month, and the PDs have to meet their obligations of separating interest and principal for their purchases over the next month.
4) Inflation-linked Korea Treasury Bonds (KTBi)
KTBi underwriting rights are granted to PDs within 10%* of the scheduled amount of issuance for the month, 100 billion won, which can be exercised on the same day of the 10Y KTB auction date and the following day.
* If the total amount of the bidding exceeds the issue amount of the month, KTBi will be allocated by the unit of one billion won according to the allocation standards, such as bidding amounts.
Non-PDs & Non-PPDs (retail investors) can purchase KTBi worth up to 10 billion won (up to 10% of scheduled issue amount for the month) through PDs on the 10Y KTB auction date and the following business day after the auction.
* KTBi interest rate spread will be adjusted to the average spread of five business days before the competitive 10Y KTB bidding.
5) Conversion offer
|
Date
|
KTB for Issue
|
KTBs for Purchase
|
Amount
|
|
June 19, 2020
10:40~11:00
|
KTBi 01125-3006
(Maturing on June 10, 2030)
|
KTBi 01500-2106
KTBi 01000-2606
|
KRW 100 billion
|
* Further details will be provided on June 16, 2020 on the BOK website.
