S.Korea finmin reaffirms its will to stabilize the local bond market

SEOUL, July 28 (Reuters)South Korea’s finance minister Thursday confirmed the government’s determination to stabilize the local bond market in the event of heightened volatility with rapidly rising interest rates.

“The government and the central bank will in due course take emergency measures for government bond buybacks or buy-back schemes in case there are excessive movements in the local bond market,” Finance Minister Choo Kyung-ho said at a policy meeting with other top executives. economic officials.

South Korea’s treasury secretary, central bank governor and the head of the financial regulator attended Wednesday’s meeting to discuss the local market implications of the US Federal Reserve’s 75 basis point rate hike.

Financial market authorities will also review other stabilizing measures used during past economic crises in the event of excessive unilateral price swings, the minister added.

(Reporting by Jihoon Lee; editing by Sam Holmes)

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