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KOREA RATES

The South Korean MOF will today auction KRW 400bn 50-year bonds, issue KTB 01625-7009.

  • The MOF last tapped the line on April 16 for KRW 700bn, the sale drew a yield of 2.10% and was covered 1.536x. The December auction of the same line was most comparable in size at KRW 350bn and at a yield of 1.750% was covered 1.70x.
  • Earlier this week Second Vice Finance Minister reassured the bond market and said South Korea plans to respond to potential volatility in the state bond market as global inflation concerns and other risk factors could spark instability in the debt market. He added the Korean bond market stabilized after high volatility sparked by a spike in US Treasury yields, but risk factors at home and abroad remain.
  • Yesterday the KDI revised its growth forecast up to 3.8%, while President Moon said earlier this week that the government will aim to achieve growth of over 4%.

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