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ÁKK sells HUF 32 bln of bonds at switch auction, less than planned

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%.