AKK sells announced volume of 12-month bills, more floaters at auction

Debt

Hungary's government debt management agency ÁKK sold the announced HUF 50 billion of twelve-month discount T-bills and sold HUF 7.5 billion of five-year floating rate bonds, raising its offer of the latter, at auctions on Thursday.

The bills were twice and the floaters were three times oversubscribed at the auction, and ÁKK sold an additional HUF 2.4 billion of the HUF 2.5 billion floating-rate bonds on offer at the non-competitive tender held following the auction.

The average yield of the 12-month T-bills on offer rose slightly both from the previous auction on August 18 and from Wednesday's respective benchmark. The floaters sold at lower average price than at their previous auction on August 4. ÁKK sold HUF 50 billion of the twelve-month discount T-bills expiring on August 22, 2012, the announced amount. Primary dealers bid for HUF 105 billion as demand dropped to usual levels from a high HUF 187.9 billion on August 18.

The average auction yield was 5.71%, up 2 basis poits from 5.69%, the only yield at the previous auction, and 1 basis point over the secondary market benchmark, calculated on the same series bill, on Wednesday.

ÁKK sold HUF 7.5 billion of 2015/B floaters, HUF 2.5 billion more than the announced amount after receiving bids for 16.4 billion. Demand dropped from HUF 19.4 billion at the previous auction on August 4, but oversubscription still rose as ÁKK reduced the auction offer from HUF 7 billion on August 4.

The average net auction price of the floating-rate bonds was 96.68% of nominal value, down from 96.74% on August 4. ÁKK raised the per-auction offer of the floating-rate bonds from HUF 5bn previously in the light of healthy oversubscription for the bonds, offered four-weekly.

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