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ÁKK exchanges HUF 35.5 bln of bonds at switch auction, less than planned

The Government Debt Management Agency (ÁKK) sold HUF 35.5 bln of bonds maturing in 2024 and 2025 for ones that expire in 2017 and 2018 at a switch auction on Wednesday, under the HUF 40 bln plan.

ÁKK sold HUF 15.5 bln of 2024/B bonds accepting 2017/A bonds as payment and a further HUF 20 bln of 2025/B bonds for 2018/B bonds.

Bids by primary dealers reached HUF 17.85 bln for the 2017/A bond exchange and HUF 30.37 bln for the 2018/B exchange.

ÁKK had planned to exchange HUF 20 bln for both the 2017/A bonds and the 2018/B bonds.

The average yield at the exchange for 2017/A bonds was 3.13% and 3.18% for the exchange of the 2018/B bonds. The closest ten-year secondary market benchmark, calculated on 2027/A bonds, was 3.48% on Tuesday.