[Appendix] Overview of Treasury Bond

Description of Treasury Bonds:

  • Maturities : 3, 5, 10, 20, 30, 50 years
  • Payment of interest : every six months
  • Coupon rate : decided through competitive bidding
  • Issuing method : electronic auction by differential-price auction method through the BOK - Wire+ System
  • Issuing Form : registry at the BOK
    - Primary auction dealers may directly register their bonds at the BOK or deposit them with the Korea Securities Depository(KSD)
  • Issuance conditions : Issuance conditions are decided by the MOSF and presented in the bidding offer.

Auction Process

  • Auction method : by means of electronic bidding through BOK-Wire system, since January 1999
  • Bid amount : Minimum bid amount and multiples are 1 billion won
  • Participants :17 Primary Dealers and 4 Preliminary Primary Dealers designated by the MOSF

Calculation of Auction Results

The differential-price auction method aligns bid rates lowest to highest and divides them into different groups at intervals of, for example, three basis point. The highest rate of each group becomes the winning rate for that group.

Bidding and Issuance Process

Bidding and Issuance Process

Bidding and Issuance Process

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