SEOUL, Sept. 10 (Xinhua) -- South Korea sold 1.45 billion U.S. dollars of sovereign bonds to global investors at a record-low rate, the finance ministry said Thursday.
The foreign exchange stabilization bonds were issued in two classes denominated in the U.S. dollar and the euro, according to the Ministry of Economy and Finance.
The FX stabilization bonds are sold by the ministry to raise funds necessary for smoothing operation in the foreign exchange market. The bond's yield acts as a benchmark for debts sold overseas by the private sector.
The 10-year dollar bond worth 625 million dollars carried a yield of 1.198 percent, or 50 basis points of premium on the 10-year U.S. Treasury Bond yield.
Both the yield of 1.198 percent and the yield premium of 50 basis points marked the lowest.
The five-year euro bond worth 700 million euros (about 825 million U.S. dollars) was sold at a yield of minus 0.059 percent, or 35 basis points on the five-year euro mid-swap rate.
It was the first time that the country issued the euro bond at a minus yield. Enditem
