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Seoul Shifts Bond Strategy, Targets Long-End Reduction in June Issuance Cut

South Korea will reduce overall debt sales in June, with the finance ministry directing most of the cutback toward longer-dated securities, a senior official said Tuesday. The move represents Seoul's latest effort to stabilize the domestic bond market. Corporate issuers have also grown cautious, with some deferring planned bond sales to June or later as yields remain elevated. Market participants expect yield curves to steepen further across Southeast Asia as inflationary pressures and reduced debt supply weigh on fixed-income markets. South Korea's targeted reduction in long-tenor issuance suggests officials view stabilizing the longer end of the curve as critical to overall market stability.