South Korea issues euro-denominated bonds for the first time in nearly four years.

The South Korean government on Thursday launched its first Euro-denominated bond issuance in nearly four years, in a test of investor confidence following the election of Lee Jae-myung as South Korean president and the end of months of political turmoil. According to sources, the price of the three-year South Korean government bond is about 40 basis points higher than the swap mid-term rate, and the price of the seven-year bond is about 70 basis points higher than the benchmark rate. As one of the countries with the highest sovereign credit rating in Asia, the South Korean government's decision to enter the market at this time comes against the backdrop of easing tensions in the Middle East, boosting investor sentiment, and driving this week's bond issuance spree. With European inflation cooling faster than in the United States, the European Central Bank cut interest rates for the eighth time this year earlier this month, creating a favorable borrowing environment. The South Korean government itself has a 700 million (approximately $819 million) bond maturing later this year. Officials from South Korea's Ministry of Strategy and Finance held a roadshow in London earlier this week. The South Korean government had previously appointed Goldman Sachs, HSBC Holdings, JPMorgan, Crdit Agricole CIB, and Mirae Asset Daewoo as the lead underwriters for this bond issuance.