CP of 3 trillion won by the Financial Services Commission's 31st, buy corporate bonds

2020-03-30     이강욱 전문기자

[Infostock Daily= Reporter Lee Kang-wook] The Financial Services Commission announced on the 30th that it will purchase up to 3 trillion won worth of corporate bills (CP), electronic short-term bonds, and corporate bonds by the 31st to raise short-term funds for companies.

The Financial Services Commission said the government plans to purchase CPs, electronic short-term bonds and corporate bonds from KDB Korea Development Bank to KRW 3 trillion for two days from 30 to 31.

As demand for funds rose on March 30 and March 31, when the first quarter ended, and corporate bills and corporate bond interest rates rose, the government began to stabilize the market by injecting funds in advance.

The short-term fund market is seeing interest rates rise at the end of this month due to increased demand for funds and a decrease in the amount set by money market funds.

CP 91-day interest rates rose to 2.160bp on the day from 1.560bp (1bp=0.01%) on the 23rd.

However, last week, the rise was reduced to less than 10bp, and the three-year interest rate on corporate bonds also rose from 2.010bp on the 23rd to 2.046bp on the morning of the 23rd.

The Financial Services Commission requested the financial company to pay 3 trillion won for the first bond market stabilization fund on the 24th, and will pay it from the 1st of next month.

“The specific size, target, and method of purchase will be determined according to market conditions,” said a Financial Services Commission official.

Reporter Lee Kang-wook gaguzi@naver.com