South Korea's Long-Term Government Bonds Hit 34%, Over 3.5 Times U.S. Level

According to e-Daily reporting on July 5, South Korea's government bonds with maturities exceeding 20 years account for 34% of issuance, more than 3.5 times the U.S. level of 9%, according to S&P data. The country's bonds maturing within three months to one year represent only 7% of issuance, compared to 29% in the U.S. As central banks enter a rate-hiking cycle, South Korea's heavy reliance on ultra-long-term bonds risks increasing the government's future interest costs. The Finance Ministry stated it plans to adjust ultra-long-term bond issuance to the lower end of the 30-35% range, at 30%, taking market conditions into account.
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