ÁKK exchanges HUF 22 bln of bonds at switch auction, less than planned

Debt

The Government Debt Management Agency (ÁKK) sold HUF 22 bln of bonds maturing in 2024 and 2022 for ones that expire in 2017 at a switch auction today, under the HUF 40 bln plan.

ÁKK sold HUF 8.5 bln of 2022/A bonds accepting 2017/B bonds as payment and a further HUF 13.5 bln of 2024/B bonds for 2017/A bonds.

Bids by primary dealers reached HUF 12.2 bln for the 2022/A bond exchange and HUF 25.2 bln for the 2024/B exchange.

ÁKK had planned to exchange HUF 20 bln of each of the longer terms.

The debt manager sold the 2022/A bonds at an average yield of 3.05% and sold the 2024/B bonds at an average yield of 3.40%.

The average yields compare to a 3.08% five-year secondary market benchmark yield, calculated on a bond expiring in 2020, and a 3.98% ten-year benchmark yield, calculated on a bond maturing in 2025.

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