South Korea Launches 30-Year Government Bond Futures to Manage Interest Rate Risks

SEOUL — In a strategic move to enhance the stability of the domestic bond market, South Korea introduced 30-year government bond futures for trading on Monday. This initiative, announced by the Ministry of Economy and Finance, marks the country's first issuance of new government bond futures since 2008.

According to Yonhap News Agency, the introduction of 30-year government bond futures is designed to provide market participants with a vital tool for hedging against long-term interest rate fluctuations associated with state bonds. This development is part of a broader effort to invigorate the bond market. The launch comes at a time when the issuance of 30-year bonds has surged, now comprising approximately 76 percent of the country's long-term government bonds, reflecting a significant shift in the government's borrowing strategy.

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