Auction Results for Fourth Issuance of 50-year KTBs
The Ministry of Economy and Finance issued 600 billion won worth of 50-year KTBs on Friday, December 7, 2018, which marks the fourth issuance of the kind in 2018.
Investors placed orders worth 650 billion won (bid-to-cover ratio: 108.3%) for the 50-year bonds, and the range of bids received was 1.500 to 2.100 percent.
The amount accepted was 600 billion won, the rate being accepted at 1.950 percent.
The fourth issuance showed strong demand for the country’s ultra-long bonds, despite a delay in IFRS17 implementation and low interest rates.
* 325 billion won/2.640% (March), 540 billion won/2.510% (June), 600 billion won/2.090% (September), 600 billion won/1.950% (December)
The Korean government will decide on a regular issuance of 50-year KTBs after reviewing this year’s results. The government will confer with buyers, including primary dealers and investor councils, to determine the time and amount for the future 50-year bond issuance.
The 2019 Issuance Plan and Measures to Improve the PD System, which will include auction methods and the amount issued, will be released at the end of December.
Please refer to the attached pdf