ÁKK sells HUF 77.5 bln of bonds, HUF 22.5 bln over plan

Debt

The Government Debt Management Agency (ÁKK) sold a combined HUF 77.5 billion of bonds at auction on Thursday, HUF 22.5 bln more than planned, according to a report by state news wire MTI.

ÁKK sold HUF 30 bln of three-year bonds, raising its original offer by HUF 10 bln after primary dealers bid for HUF 167.2 bln of the securities. The average yield was 1.34%, 8 bp under the secondary market benchmark, and 16 bp lower than the yield at the previous auction of the bonds one week earlier.

The agency sold HUF 37.5 bln of five-year bonds, HUF 12.5 bln over the plan. Bids reached HUF 74.2 bln. The average yield was 1.46%, 5 bp under the benchmark, and the yield at the auction a week earlier.

ÁKK sold HUF 10 bln of a 20-year bond, as planned. Bids came to HUF 16.1 bln. The average yield was 2.48%.

The 20-year bond, Hungaryʼs first, was launched at an auction on January 16, 2020. None of the bonds were sold at the second auction, on March 12, as concerns over the novel coronavirus caused market volatility. A 20-year benchmark was planned to be introduced after the second auction of the bonds.

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