S.Korea finmin to issue 2-year treasury bonds on regular basis

Credit: REUTERS/THOMAS WHITE

South Korea's finance ministry said on Tuesday it plans to issue 2-year treasury bonds on a regular basis, starting next January, to diversify demand for the nation's record debt sales planned for this year.

SEOUL, Oct 20 (Reuters) - South Korea's finance ministry said on Tuesday it plans to issue 2-year treasury bonds on a regular basis, starting next January, to diversify demand for the nation's record debt sales planned for this year.

Issuing the new 2-year notes to its regularly scheduled bond sales could reduce sales of longer-term bonds and put downward pressure on the yields.

South Korean bond market is struggling to absorb the nation's record debt sales of 167 trillion won planned for this year.

The country currently issues treasury bonds with tenors of three years, five years, 10 years, 20 years and 30 years.

(Reporting by Cynthia Kim, Editing by Sherry Jacob-Phillips)

((Cynthia.Kim@thomsonreuters.com; 822 3704 5655; Reuters Messaging: cynthia.kim.thomsonreuters.com@reuters.net))

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