South Korea reduces government bond issuance in November to 12 trillion won

(1) South Korea has significantly reduced government bond issuance this month and will continue to scale back in November. Regulators aim to ease supply pressure in the bond market, as yields in the Korean bond market remain at elevated levels. (2) The Ministry of Finance of South Korea announced on Thursday that next month's government bond issuance will be set at 12 trillion Korean won (equivalent to 8.98 billion USD), a reduction of 5 trillion Korean won from the original plan. (3) The announcement also stated that the government will closely monitor domestic and international market conditions and may introduce additional stabilizing measures if necessary, including emergency government bond repurchases. (4) This round of reduction aims to curb rising financing costs. (5) High oil prices have triggered global bond market sell-offs, with the pressure spreading to South Korea. (6) The increase in energy prices highlights the region's difficulties: central banks must weigh market stabilization against ongoing inflation risks, as inflation constraints limit the scope for rate cuts.