ÁKK raises offer for shortest term at bond auction

Debt

The Government Debt Management Agency (ÁKK) sold HUF 65 bln of bonds at an auction on Thursday, raising its original offer by HUF 10 bln on strong demand for the shortest term, Hungarian news agency MTI reported.

ÁKK sold HUF 30 bln of three-year bonds, HUF 10 bln more than planned. Primary dealers bid for HUF 67.5 bln of the papers. Average yield was 3.14%, 2bp under the secondary market benchmark and 10bp lower than the yield at the previous auction of the bonds two weeks earlier. Yields ranged between 3.11% and 3.16%.

ÁKK sold HUF 20 bln of five-year bonds, in line with the offer. Bids came to HUF 24.9 bln. Average yield was 3.77%, 11bp over the benchmark, which matures earlier, and 21bp higher than the yield two weeks earlier. Yields ranged between 3.69% and 3.81%.

ÁKK sold HUF 15 bln of ten-year bonds, as planned. Bids reached HUF 22.8 bln. Average yield was 4.65%, 4bp under the benchmark but 23bp over the yield at the previous bond auction. Yields ranged between 4.62% and 4.67%.

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