First 2-Year Supply From MOF

South Korea's MOF will today auction KRW 700bn of 2-year notes issue # KTB 00000-2303, the first sale of 2-year bonds under the new issuance plan. Results due after 0230GMT/1030KST

• The MOF announced in October that it would begin selling 2-year bonds in 2021 in order "to ease the burdens on mid- and long-maturity treasury bonds and set a stable yield for short-maturity bonds."
• The BOK sold KRW 2.4tn of 2-year paper on Feb 3, the sale drew cover of 1.48 at a yield of 0.87%.
• The MOF sold 3-year paper yesterday, the auction was on the weak side with lower cover despite a yield concession. Fixed income space came under pressure after the weak auction. There is still some lingering concern around South Korea's budget and issuance plans given its intentions to offer cash handouts to citizens and SME's as stimulus.