About KTBs
Currently issued government bonds include KTBs, Treasury Bills(T-bills), National Housing Bonds(NHBs) Type 1, and Foreign Exchange Stabilization Fund Bonds(FX SFBs), which are denominated in a foreign currency.
As of 2019
- total : Issuance Volume(167.6 trillion won)
- 1. FX SFBs 1.8 trillion won 1.1%
- 2. KTBs 101.7 trillion won 60.7%
- 3. T-Bills 29.1 trillion won 29.1%
- 4. NHBs 15.4 trillion won 9.2%
As of 2019, Outstanding Balance of T-Bills : 0
- total : Outstanding Balance(696.2 trillion won)
- 1. KIBS 611.5 trillion won 87.8%
- 2. NHBs 76.4 trillion won 11.0%
- 3. FX SFBs 8.3 trillion won 1.2%
Among these government bonds, KTBs are issued in the largest volume and trading is active. Accordingly, the on-the-run KTB market yields serve as a benchmark yield. These are currently six types of KTBs issued, according to maturity; 3-year, 5-year, 10-year, 20-year, 30-year, and 50-year KTBs. These KTBs fall into fixed-interest type bonds and inflation-linked KTBs (limited to the 10-year maturity, KTBis). KTBi links the principal and coupon rate of the KTB to a consumer price index.
| No. Annual new issuances | New issuance months | Fungible issue period | |
|---|---|---|---|
| 3-year | Twice a year | Jun, Dec | 6 months |
| 5-year | Twice a year | Mar, Sep | 6 months |
| 10-year | Twice a year | Jun, Dec | 6 months |
| 20-year | Once a year | Sep | 1 year |
| 30-year | Once a year | Mar | 1 year |
| 50-year | Every two years | Sep | 2 years |
KTBs are fungible issues, meaning that the issuing conditions, including maturity and coupon rate, are the same for bonds issued within a certain period of time. Currently, 3-year KTBs and 10-year KTBs are issued on 10 June and 10 December, 5-year KTBs are issued on 10 March and 10 September, 20-year KTBs are issued on 10 September, 30-year KTBs are issued on 10 March, and 50-year KTBs are issued on 10 September. The coupon rates of KTBs are set to multiple of 0.125%.