South Korea to reduce government bond issuance in June to stabilize the bond market

Golden Ten Data reported on May 21 that, in order to defend the bond market, the South Korean Ministry of Finance stated it will reduce the issuance of South Korean Treasury bonds in June. Other measures include promoting foreign capital inflows related to South Korea's inclusion in the FTSE Russell WGBI and promoting the South Korean "domestic market repatriation accounts." Since the beginning of this year, South Korean Treasury bonds (excluding exchange rate fluctuations) have fallen by 6.9%, marking the worst performance among 44 markets. The semiconductor boom has accelerated economic growth and pushed up inflation, with analysts expecting the Bank of Korea to deliver a hawkish signal next week. The 10-year Treasury bond yield fell by 5 basis points to 4.15% on Thursday after previously hitting its highest level since the end of 2023.