ÁKK switches short-term bonds to HUF 79 bln long ones at auction

Debt

The Government Debt Management Agency (ÁKK) sold primary dealers HUF 79 bln of government bonds maturing in 2023 and 2028 for bonds that run until 2017 at a switch auction on Wednesday. Auction sales were HUF 21 bln less than planned.

ÁKK sold HUF 29 bln of 2020/A bonds for payments with 2017/B bonds, less than the HUF 50 bln original offer. Bids reached HUF 38.8 bln. Average auction yield was 2.72%.

ÁKK sold the announced HUF 50 bln of 2023/A bonds for 2017/A bonds after receiving bids for HUF 72.5 bln. Average auction yield was 3.02%.

ÁKK calculated 2017/A bonds, expiring in November 2017, as payment at a yield of 1.53%. It calculated 2017/B bonds, expiring in February 2017, at a yield of 1.41%.

The yield of the bonds sold at the switch auction compare to a five-year secondary market yield of 2.66% and a ten-year yield of 3.15%.

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