2026-06-16
Added · Updated
The Bank of Korea announces the issuance of Monetary Stabilization Bond 03340-2903-0307 on a fungible basis with MSB 03340-2903-0300 under the Open Market Operation Regulations. The central bank will conduct a competitive bidding auction on June 17, 2026, with a scheduled issue amount of 1,000 billion won and a repayment date of March 3, 2029. Eligible institutions must adhere to specific electronic bidding procedures, including a 600 billion won per-institution limit and a Dutch auction method for determining successful bid rates.
Monetary Stabilization Bond 03340-2903-0307 Issuance Notice Jun 16, 2026 The Bank of Korea announces that MSB 03340-2903-0307 and MSB 03340-2903-0300 (Mar 3, 2026) are to be issued on a fungible basis in accordance with the Article 14-2 of the “Open Market Operation Regulations”.
(Appendix) Details of MSB Issuance
B. Bidding process ㅇ Eligible bidders : institutions eligible for open market operations (excluding institutions subject to bidding restrictions) ㅇ Deposit : exempt ㅇ Auction amount : The minimum auction amount is set at 10 billion won and any amount above that should be in multiples of 10 billion won. The bidding limit for each institution is set at within 60% of the scheduled issue amount of competitive bidding. ㅇ Application method for auction: specify the interest rate up to the third decimal place in annual terms (in increments of 0.5bp) – One institution can bid at up to six different rates (However, re-bidding at the same rate is not allowed). C. How to determine a successful bid ㅇ Winning bidders are determined sequentially, starting with the lowest rate among the bids and working up to the scheduled issue amount. – If the amount of bids at the same rate exceeds the scheduled issue amount, excess bids may be accepted within a range of up to 20% of the scheduled issue amount, if necessary. ㅇ Successful bid rate
– The highest winning rate determined by competitive bidding (dutch auction) D. Settlement date: Refer to the Notice ㅇ Each winning bidder will pay at the winning rate through its current account established with the Bank of Korea. ㅇ The Issue price is calculated in millions of won (rounding down for amounts less than one million won).
<Formula for calculating issue price> Issue Price = × × : face value, : coupon rate, : issue yield : number of interest payments per year : number of remaining interest payments : number of days from the day following the sales date to the next interest payment due date : number of days from the day after the last interest payment due date (or issue date if no interest is due) to the next interest payment due date