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ÁKK sells more than planned bonds at auction, yields drop

The Government Debt Management Agency (ÁKK) sold a combined HUF 53 bln of bonds at auction today, HUF 3 bln more than planned. Yields fell sharply from the previous auction held on January 21 and were also down from yesterday’s secondary market benchmark, Hungarian news agency MTI reported.

The debt manager sold more than planned three- and ten-year bonds but cut its sales of five-year bonds which were only minimally oversubscribed. The three- and the ten-year yields fell to their lowest level since last November and the five-year yields was back at its level in the middle of December.

ÁKK sold HUF 22 bln of three-year bonds, HUF 2 bln more than planned. Dealers bid for HUF 37.8 bln of the papers. Subscription was healthy but halved from the previous auction. The average yield was 1.87%, 43 bps under the yield at the previous auction of the bonds two weeks earlier and 6 bps under the latest benchmark.

ÁKK sold HUF 16 bln of five-year bonds, HUF 4 bln less than planned. Bids came to HUF 20.8 bln, down from HUF 37.4 bln two weeks earlier. Average yield was 2.33%, 41 bps under the yield two weeks earlier and down 1 bps from the secondary market benchmark.

ÁKK sold HUF 15 bln of ten-year bonds, raising its offer by HUF 5 bln. Bids rose to HUF 25 bln from HUF 15.6 bln two weeks earlier. Average yield was 3.33%, 27 bps under the yield at the previous auction and 3 bps down from the benchmark.