SEOUL, Feb 23 (Reuters) - South Korea's central bank chief
on Tuesday said he will consider stepping up government bond
purchases if an increase in issuance adds to volatility in bond
yields, but stopped short of offering a concrete plan.
"The amount of treasury bond issuance will significantly
increase this year, more so than in the previous years,"
Governor Lee Ju-yeol said in s parliament session.
"We will faithfully carry out role expected of this and help
stabilize markets."
Lee, however, said it isn't appropriate for the Bank of
Korea to directly acquire treasury bonds from the government,
suggesting any bond buying will be made in the secondary market.
The government is working on a fourth round of cash handouts
and a supplementary budget to help small businesses hurt by the
pandemic.
The BOK is expected to use ad-hoc debt purchases to counter
any undesirable tightening of monetary conditions which could
slow the economy's recovery from the coronavirus crisis.
(Reporting by Cynthia Kim; Editing by Kim Coghill)