ÁKK sells HUF 37 bln of bonds at switch auction, below plan

Debt

Hungary’s Government Debt Management Agency (ÁKK) sold a combined HUF 37 bln of bonds maturing in 2022 and 2024 for bonds expiring in 2018 and 2019 at a switch auction today, Hungarian news agency MTI reported.

The ÁKK sold HUF 20 bln of 2022/A bonds, accepting 2019/A bonds as payment. The ÁKK also sold HUF 17 bln of 2024/B bonds for 2018/A bonds. 

The scale of the sales was below the original plan, as the ÁKK had offered to sell HUF 20 bln of bonds in both cases.

Demand from primary dealers for the 2022/A bonds came to HUF 66.06 bln. Demand for the 2024/B bonds was HUF 56.38 bln.

The 2022 bonds sold at an average yield of 2.10% at the exchange, while the 2024 bondsʼ average yield came to 3.06% at the switch auction. The average yield of the 2019/A bonds was 0.75%, and that of the 2018/A bonds was 0.39%.

Of the closest secondary market benchmarks, the five-year benchmark calculated on 2022/B bonds was 2.14%, while the three-year benchmark calculated on 2020/C bonds was 1.45%.

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