South Korea to Reduce Government Bond Issuance in June, Finance Ministry Says

South Korea's Finance Ministry announced plans to reduce the issuance of government bonds in June to protect the bond market. According to Jin10, additional measures include promoting foreign capital inflows related to South Korea's inclusion in the FTSE Russell World Government Bond Index (WGBI) and advancing the 'Domestic Market Return Account.' Since the beginning of the year, South Korean government bonds have fallen 6.9%, excluding exchange rate fluctuations, marking the worst performance among 44 markets. The semiconductor boom has accelerated economic growth and increased inflation, leading analysts to expect the Bank of Korea to signal a hawkish stance next week. On Thursday, the yield on the 10-year government bond fell by 5 basis points to 4.15%, after previously reaching its highest level since the end of 2023.