South Korea plans to reduce issuance of mainly longer-dated government bonds in
June as part of efforts to stabilize the debt market, Deputy Finance Minister
for Treasury Hwang Soon Kwan said. Specific maturities have not yet been
finalized and will depend on market conditions. The government announced the
planned cut on Thursday without detailing affected tenors. South Korea’s 10-year
bond yield fell 2 basis points to 4.15% on Friday after reaching its highest
level since late 2023 earlier this week. Hwang said no decision has been made on
July issuance or broader changes to the annual borrowing plan. The move comes as
a global semiconductor boom boosts economic growth and inflation pressures, with
markets expecting a more hawkish tone from the Bank of Korea next week.
