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March 2020 Treasury Bond Issuance Plan
The Ministry of Economy and Finance plans to issue Korea Treasury Bonds worth approximately 12,100 billion won in March 2020 through competitive bidding.
March 2020 Auction Schedule
(KRW billion)
| Name |
Auction Notice |
Auction Date |
Settlement Date |
Issue Date |
Type1 |
Volume |
| 3Y KTB 01250-2212 |
27-Feb |
02-Mar |
03-Mar |
10-Dec-2019 |
F |
2,500 |
| 5Y KTB 01500-2503 |
04-Mar |
09-Mar |
10-Mar |
10-Mar-2020 |
F |
2,450 |
| 10Y KTB 01375-2912 |
11-Mar |
16-Mar |
17-Mar |
10-Dec-2019 |
F |
3,050 |
| 20Y KTB 01125-3909 |
18-Mar |
23-Mar |
24-Mar |
10-Sep-2019 |
F |
1,100 |
| 30Y KTB 01500-5003 |
27-Feb |
03-Mar |
04-Mar |
10-Mar-2020 |
F |
3,000 |
1 F = fungible issue, P = pre-issuance
1) Non-competitive bids option I
For retail investors, KTBs worth 2,420 billion won (not more than 20% of the offering 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 5%-30%* of the accepted bid amount within three business days after the auction.
* Up to 20% of the option is granted to the top-performing PDs, 15% to the 2nd best-performing PDs, 10% to the 3rd best-performing PDs, and 5% for the rest, according to their market-making performances for the half of the year. 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 from 14:30 to 15:30 on the 10Y KTB auction date of 10Y KTBs, and from 09:00 to 15:30 on the next date of the 10Y KTB auction date.
* 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 between the notice date of the 10Y KTB auction and the 1st 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 |
13-Mar-2020
10:40~11:00 |
30Y KTB 01500-5003
(Maturing on March 10, 2050) |
KTB 05500-2803
KTB 05500-2912
KTB 04750-3012
KTB 04000-3112 |
KRW 100 billion |
20-Mar-2020
10:40~11:00 |
10Y KTB 01375-2912
(Maturing on December 10, 2029) |
KTBi 01125-2306
KTBi 01750-2506
KTBi 01000-2606 |
KRW 100 billion |
* Further detail will be provided on March 10, 2020 and March 17, 2020 on the BOK website.
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