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BOK purchases W2tr worth of state bonds

Bank of Korea headquarters in central Seoul (Yonhap)
Bank of Korea headquarters in central Seoul (Yonhap)

The Bank of Korea (BOK) on Tuesday purchased 2 trillion won ($1.76 billion) worth of government bonds as part of its market-stabilizing efforts amid the coronavirus crisis.
  
According to an announcement posted on its website, an auction of the first batch of BOK's 7 trillion won bond purchase program within the first half was closed after attracting bids of more than 4.2 trillion won.
  
The bank bought three-year government bonds at 1.17 trillion won, five-year Treasurys at 140 billion won and 10-year bonds at
690 billion won.
  
Last month, BOK announced its bond-buying plan for the purpose of market stability, while South Korea has increased sales of state debts to cushion the impact of the coronavirus pandemic.
  
BOK Gov. Lee Ju-yeol earlier said the BOK would "actively" deal with its purchase of government bonds.
  
Despite the purchase, the local bond market remained volatile.
  
The return on 10-year Treasurys came to 2.034 percent Tuesday, up 0.6 basis point from the previous session. On the previous day, the yield topped 2 percent for the first time since March 2019.
  
The yield on five-year state bonds rose 9.5 basis points to 1.592 percent on Tuesday. (Yonhap)

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