The Bank of Korea said on the 9th it will buy up to 3 trillion won in Government Bonds to respond to a surge in government bond yields (a fall in bond prices).
The Bank of Korea (BOK) announced through a "simple purchase of Treasury bonds" notice that it will buy 3-year, 5-year, and 10-year Treasury issues via competitive bidding for 10 minutes from 11 a.m. on the 10th, in an amount up to 3 trillion won. Payment settlement is set to be completed by 4 p.m. on the 12th.
When the Bank of Korea (BOK) directly purchases Government Bonds in the market, it supplies liquidity and helps ease the surge in government bond yields.
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