Finance ministry cuts November bond issuance by 5 trillion won

The finance ministry said Thursday it will cut government bond issuance for November by 5 trillion won ($3.74 billion) from its original plan, trimming supply as it monitors unsettled market conditions at home and abroad. The reduction brings competitive-auction sales of Treasury bonds to 12 trillion won ($8.98 billion) for the month, the Ministry of Economy and Finance said.

In addition to the competitive auctions, the ministry will issue 1.2 trillion won ($898 million) of won-denominated foreign exchange stabilization fund bonds and will not sell any fiscal treasury bills in November. It said it would move immediately with further stabilization measures, including emergency buybacks, should market conditions require them.

Of the 12 trillion won of competitive issuance, the ministry also plans 500 billion won ($374 million) of exchange issuance, in which holders of older bonds swap them for new benchmark paper. That comprises 400 billion won ($299 million) of 30-year off-the-run bonds exchanged for 30-year benchmarks and 100 billion won ($74.8 million) of inflation-linked bonds exchanged for 10-year nominal benchmarks.

Primary dealers and members of the public may also take up a set amount of bonds at the auction's winning yield through non-competitive bids.