ÁKK sells HUF 50.5 bln of bonds at auction; demand weak for shorter terms

Debt

The Government Debt Management Agency (ÁKK) sold a combined HUF 50.5 bln of bonds at auction on Thursday, slightly less than planned as demand was weak for the shorter terms.

ÁKK sold HUF 15 bln of three-year bonds, cutting its original offer by HUF 5 bln after primary dealers bid for just HUF 21.6 bln. Average yield was 2.10%, 18 bp under the secondary market benchmark but level with the yield at the previous auction of the bonds two weeks earlier. Yields ranged between 2.08% and 2.11%.

ÁKK sold HUF 17.5 bln of five-year bonds, compared to an original offer of HUF 20 bln. Dealers bids came to HUF 26 bln. Average yield was 2.61%, 23 bp under the benchmark and 9 bp lower than the yield two weeks earlier. Yields ranged between 2.56% and 2.64%.

ÁKK raised its offer for ten-year bonds from HUF 12 bln to HUF 18 bln after dealers bid for HUF 70 bln of the papers. Average yield was 3.29%, 28 bp under the benchmark but 13 bp over the yield at the previous auction. Yields ranged between 3.28% and 3.30%.

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