The Bank of Korea,the central bank of South Korea,buys 1.5 trillion

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With the financial market jittery since U.S. Federal Reserve Chairwoman Janet Yellen’s hinted at raising U.S. interest rates, Korea’s central bank announced it intends to intervene in the local market with the hopes of stabilizing it for the first time in eight years.

The Korean central bank said it will buy six government bonds worth 1.5 trillion won ($1.27 billion) at 2 p.m. today ranging from those with maturities of three years to those that mature in 20 years.

This is not the first time that the Bank of Korea has purchased Korean bonds; it purchased them three times last year alone. The last time was in October 2015, when the BOK bought 700 billion won in bonds. However, this is the first time since the 2008 global crisis that the Korean central bank is purchasing such a massive amount of government bonds. That year, the bank bought 1 trillion in treasuries on Nov. 19.

Market instabilities have risen since Donald J. Trump’s upset victory in the U.S. presidential election on Nov. 8. After the real estate mogul won the election, Korean bond interest has been rising rapidly, breaking this year’s all-time high.
http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=3026428