Korea to sell W300b worth of 50-year state bonds

South Korea will sell 300 billion won ($260.8 million) worth of the longest 50-year state bonds next month in a bid to meet growing market demand for safer assets, the Finance Ministry said Monday.

“When we first introduced the longest Treasury last year, we planned to float some 1 trillion won in 2017,” Vice Finance Minister Song Eon-seog told reporters in a briefing in Sejong. “The first batch of 300 billion won will be put on auction in late March.”

The detailed timing and the amount of the planned issue of 50-year state bonds will be unveiled later this week, he added.

Last year, the South Korean government sold 1.1 trillion won worth of Treasurys with a maturity of 50 years for the first time on the back of its fiscal health and strong macroeconomic fundamentals.

“The auction for the 50-year Treasury was successful,” said Song. “Market players have agreed to issue more.”

The government plans to sell a combined 103.7 trillion won worth of Treasurys next year, down 5.8 percent from this year‘s estimated 110 trillion won. (Yonhap)