Mirae Asset Securities said on the 6th it will accept February subscriptions for personal-investor Government Bonds.
The subscription will run for five business days from today through the 12th, excluding holidays. Applications can be submitted from 9 a.m. to 4 p.m. through Mirae Asset Securities branches nationwide and the mobile trading system (MTS) M-STOCK.
The total issuance is 170 billion won, up 30 billion won from the previous month. By tranche, the amounts are as follows: ▲ five-year 60 billion won (down 30 billion won from the previous month) ▲ 10-year 80 billion won (up 40 billion won from the previous month) ▲ 20-year 30 billion won (up 20 billion won from the previous month).
The spreads for the February issues are ▲ five-year 0.2% ▲ 10-year 1.0% ▲ 20-year 1.1%. Accordingly, if held to maturity, the pre-tax yields are ▲ five-year 19.24% (annual average 3.84%) ▲ 10-year 55.56% (annual average 5.55%) ▲ 20-year 148.80% (annual average 7.44%).
Last month, for the first time, all tranches—five-year, 10-year, and 20-year—were oversubscribed. By subscription amount, the five-year drew about 119.6 billion won for a 90 billion won offer (bid-to-cover ratio 1.32:1), the 10-year drew about 158.9 billion won for a 40 billion won offer (3.97:1), and the 20-year drew about 56.6 billion won for a 10 billion won offer (5.65:1). In total, about 335.1 billion won was bid for the 140 billion won offer, for a ratio of 2.39:1.
Mirae Asset Securities said this reflected a combination of factors, including increased investment appeal due to institutional improvements by the Ministry of Economy and Finance, market demand for stable assets, and wider spreads on long-dated notes of 10 years or more.