The Ministry of Economy and Finance plans to issue Korea Treasury Bonds worth approximately 7,700 billion won in May 2019 through competitive bidding.

Non-competitive bids option

For retail investors participating in competitive bidding, KTBs worth 1,540 billion won (not more than 20% of the offering amount in the auction) will be allocated first at the highest accepted bid rate.

Non-competitive bids option

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 second half of 2018. MOEF will grant additional 10%p to best performing PDs in the monthly evaluation.

Non-competitive bids option

KTB STRIPS are regularly supplied for up to 160 billion won for each maturity (210 billion won for 10Y and 30Y KTBs). PDs that have obtained the right to purchase these KTB STRIPS can make purchases of up to 20 billion won.

* On the 3rd business day after the auction, 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.

Inflation-linked Korea Treasury Bonds (KTBi)

KTBi underwriting rights are granted to PDs differentially within 10% of the scheduled issue amount for the month (100 billion won), which can be exercised from 14:30 to 15:30 on the auction date of 10Y KTBs, and from 09:00 to 15:30 on the next date of the auction.

* 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 and 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 date.

* KTBi interest rate spread will be adjusted to the average spread of five business days before the competitive 10Y KTB bidding.

Source: Ministry of Strategy and Finance