Bond sales rise in Sept. on increased gov't bond issuance

▲ This rendered image depicts government bonds and their yield increase. (Yonhap)

bond sales-September

Bond sales rise in Sept. on increased gov't bond issuance

SEOUL, Oct. 16 (Yonhap) -- Bond sales in South Korea rose from a month earlier in September due to increased government bond issuance following the government's supplementary budget, data showed Thursday.

The value of bonds sold in Korea stood at 94.6 trillion won (US$66.6 billion) last month, up 20.3 trillion won from a month earlier, according to the data from the Korea Financial Investment Association (KOFIA).

The yield on three-year Treasury bonds closed at 2.582 percent in September, up 15.6 basis points from a month earlier, according to the data.

Treasury bond yields closed higher last month due to various factors, including the depreciation of the Korean won against the U.S. dollar and the unstable local housing market, KOFIA said.

Corporate bond issuance rose to 16.1 trillion won from 7.6 trillion won over the cited period.

By corporate bond grade, AAA bonds increased by 600 billion won, AA bonds by 4 trillion won and A bonds by 2.3 trillion won.

Demand forecasting for corporate bonds reached 4.8 trillion won in September, down 1.2 trillion won from the same period last year, according to KOFIA.

Meanwhile, individual investors net purchased 3.7 trillion won worth of bonds, while foreign investors added 13.4 trillion won worth of bonds, including 11.8 trillion won worth of government bonds.

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