The Government Debt Management Agency (ÁKK) sold HUF 32 bln of bonds maturing in 2024 and 2025 for ones expiring in 2018 and 2019 at a switch auction today, according to Hungarian news agency MTI.
The ÁKK sold HUF 12 bln of 2024/B bonds, accepting 2018/C bonds as payment, and a further HUF 20 bln of 2025/B bonds for 2019/A bonds. It originally planned to sell HUF 20 bln of both papers.
Demand by primary dealers for the 2024/B bonds came to HUF 22.8 bln, and to HUF 40.6 bln for the 2025/B bonds.
The 2024 bonds sold at an average yield of 2.89% at the exchange, and the 2025 bonds at an average 3.09%. Of the closest secondary market benchmarks, the five-year benchmark, calculated on 2021/B bonds, was 1.92%, while the ten-year benchmark calculated on 2027/A bonds was 3.49% on Tuesday.
The debt manager accepted the 2018/C bonds, expiring on June 22, 2018, at a yield of 0.35% as payment. It accepted the 2019/A bonds, which mature on June 24, 2019, at a yield of 0.82%.