Korea Exchange (KRX) said on the 17th that it designated the final settlement benchmark bonds for Government Bonds futures September 2026 contracts, which will trade starting on the 18th.
A final settlement benchmark bond is a reference product designated by the exchange so that Government Bonds futures can be traded based on actual Government Bonds. Government Bonds futures are derivatives with a face value of 100 won and a 5% coupon Government Bond as the underlying asset, but such a Government Bond does not actually exist. Accordingly, the exchange designates a combination of certain issues among Government Bonds with semiannual interest payment methods to approximate the underlying asset.
The final settlement benchmark bonds for the 3-year Government Bonds futures September 2026 contracts are three issues: Korea Treasury Bond 02750-2812 (25-10), Korea Treasury Bond 02250-2806 (25-4), and Korea Treasury Bond 03375-3103 (26-3). The final settlement benchmark bonds for the 5-year Government Bonds futures September 2026 contracts are Korea Treasury Bond 03375-3103 (26-3) and Korea Treasury Bond 02500-3009 (25-8).
For the long end, the final settlement benchmark bonds for the 10-year Government Bonds futures September 2026 contracts are Korea Treasury Bond 03250-3512 (25-11) and Korea Treasury Bond 02625-3506 (25-5). The final settlement benchmark bonds for the 30-year Government Bonds futures September 2026 contracts are Korea Treasury Bond 03500-5603 (26-2) and Korea Treasury Bond 02625-5509 (25-7).
Spot yields by final settlement benchmark bond are calculated and published by the Korea Financial Investment Association at 11:30 a.m. and 4 p.m. each day.