S. Korea's bond sales slip 16.4 pct in Aug.

SEOUL, Sept. 7 (Yonhap) -- South Korea's bond issuance shrank 16.4 percent in
August from the previous year as climbing bond rates pushed down demand, the
bourse operator said Monday.

The government, state enterprises and private companies sold a combined 57.74
trillion won (US$46.5 billion) worth of debts last month, compared with 69.03
trillion won a month earlier, the Korea Exchange (KRX) said in a report.
"The fall in bond sales came as rising interest rates on short-term bonds drove
down demand," said a KRX official.
The benchmark rate on certificate of deposits (CDs), along which short-term debts
move, stood at 2.57 percent as of the end of August, compared with the previous
four months' fixation at 2.41 percent, according to the KRX.
South Korea's bond yields advanced last month amid recovery hopes and speculation
about a upcoming rate cut by the Bank of Korea.
As of end-August, the benchmark yield on five-year government bonds stood at 4.91
percent, up 0.15 percentage point from a month earlier while the return on
three-year Treasuries gained 0.12 percentage point to 4.38 percent, the KRX
added.
pbr@yna.co.kr
(END)