Bank of Korea scales down issuance of bonds
The nation’s central bank has decided to reduce the issuance of monetary stabilization bonds, as bond interest rates have been on the rise since Donald J. Trump’s upset victory in the U.S. presidential election and recent hints by Federal Reserve Chairwoman Janet Yellen of a coming interest rate hike have led to market worries.The Bank of Korea on Friday said it has decided to scrap initial plans to issue 1 trillion won ($8.5 billion) worth of monetary stabilization bonds, which would have included one-year maturity bonds worth 500 billion won and short-term 91-day bonds worth 500 billion won.
Instead, it will issue 300 billion won worth of bonds on Monday. The central bank said it has decided not to issue one-year maturity bonds and will reduce the number of 91-day bonds.
BY KIM YOUNG-NAM [kim.youngnam@joongang.co.kr]
with the Korea JoongAng Daily
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