AKK raises offers on strong demand at bond auction; yields fall sharply

Debt

Government Debt Management Agency (AKK) sold HUF 22.5 billion of three-year bonds, raising its original offer by HUF 7.5 billion after primary dealers submitted HUF 78.3 billion of bids.

Average yield at the auction was 6.90%, 19bp under the secondary market benchmark but 33bp over the yield at the previous auction of the bonds two weeks earlier. Yields ranged between 6.80% and 6.92%.

AKK sold HUF 22.5 billion of five-year bonds, also HUF 7.5 billion more than planned. Offers came to HUF 86.2 billion.

Average yield for the bonds was 7.48%, 11bp under the secondary market benchmark but 36bp over the yield at the previous auction. Yields ranged between 7.46% and 7.50%.

AKK sold HUF 12 billion of ten-year bonds, HUF 4 billion over the announced amount. Bids were HUF 58.1 billion.

Average yield was 7.69%, 10bp under the secondary market benchmark but 29bp over the yield at the previous auction Yields ranged between 7.68% and 7.70%.

At a non-competitive tender after the auction, AKK sold an additional HUF 4.4 billion of the three-year, HUF 2.9 billion of the five-year and HUF 2.0 billion of the ten-year bonds.

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