Shortage of Reserves in the Short-Term Money Market on the 20th, Revenue of 4.2 Trillion Won

On the 20th, a shortage of reserves occurred in the domestic short-term money market. The revenue of 4.2 trillion won, along with the sale of repurchase agreements (RPs) by the Bank of Korea and the issuance of monetary stabilization securities, contributed to a reduction in liquidity. The factors increasing reserves were recorded as 2.2 trillion won from fiscal revenue, 500 billion won from maturing Bank of Korea RPs, 300 billion won from maturing government bond accounts, 2.3 trillion won from early redemption of government bonds, 1 trillion won from maturing fiscal securities, and 500 billion won from maturing fund adjustment deposits. In contrast, the factors decreasing reserves included 4.2 trillion won from revenue, 1 trillion won from the sale of Bank of Korea RPs, 200 billion won from government bond accounts, 600 billion won from the issuance of government bonds, 200 billion won from the recovery of surplus government funds, and 500 billion won from fund adjustment deposits. Based on simple summation, the increase was 6.8 trillion won, while the decrease was 6.7 trillion won, indicating that the shortage from the previous trading day continues to exert pressure on the funding supply and demand on the day. The overnight call rate was 2.767%, with a trading volume of 14.1503 trillion won. The sale of Bank of Korea RPs acts to absorb liquidity in the market, while the issuance of government bonds and the establishment of government bond accounts are factors that reduce short-term liquidity.