BoK to Cut Bond Issuance

South Korea’s central bank said it will reduce the size of monetary stabilization bonds issuance in a move to help stabilize the local financial markets, Yonhap reported. The MSB is a unique policy tool devised by the Korean government to control excess liquidity in the markets. It is mainly issued by the Bank of Korea to financial institutions or individuals for the purpose. The BoK said it will issue 300 billion won ($255 million) worth of MSBs on Nov. 28, sharply lower than its originally planned one trillion won bonds. It also plans to reduce the planned issuance of MSBs in December to keep interest rates for bonds from rising further, the policy bank said.