Bank of Korea schedules competitive bidding for bond buybacks in January
The Bank of Korea announced competitive bidding for buybacks of Monetary Stabilization Bonds in January 2026. The operation targets specific 1-year and 3-year MSBs with a scheduled buyback amount of up to 2.0 trillion won.
Targeting Key Bond Maturities
The Bank of Korea (BOK) will conduct competitive bidding for buybacks of Monetary Stabilization Bonds (MSBs) on January 20, 2026. The operation targets three specific MSB series: 1-year MSBs maturing on July 9, 2026 (02280-2607-01), 3-year MSBs maturing on September 3, 2026 (04000-2609-03), and 3-year MSBs maturing on March 3, 2027 (03430-2703-03).
The scheduled buyback amount is set at up to 2.0 trillion won, based on face value.
Eligible participants include institutions qualified for competitive bidding, fixed-rate tenders, and outright securities transactions, excluding those subject to bidding restrictions.
The auction will be conducted electronically via BOK-Wire+ between 10:00 and 10:10 on January 20. Settlement for the MSBs is scheduled for January 22, 2026, by 16:00.
Navigating the Bidding Process
The competitive bidding process for Monetary Stabilization Bonds requires eligible institutions to submit bids electronically through BOK-Wire+.
The minimum auction amount is 10 billion won, with any amount above that required in multiples of 10 billion won.
Each institution's bidding limit is capped at the scheduled total buyback amount.
Bidders must specify the interest rate up to the third decimal place in annual terms, in increments of 0.5 basis points.
Institutions can submit multiple bids with different interest rates for each MSB.
Successful bids will be determined sequentially from the highest rate offered for each MSB.