Bond auction sales exceed plan, yields rise

Debt

Hungary’s Government Debt Management Agency (ÁKK) sold a combined HUF 52 billion of bonds at auction today, raising its original offer by HUF 7 bln, Hungarian news agency MTI reported. Demand was strong, and yields rose sharply on the two longer-term bonds.

The ÁKK sold HUF 23.5 bln of three-year bonds, HUF 3.5 bln more than planned. Primary dealers bid for HUF 59.15 bln of the papers. The average yield was 1.20%, 3 bps over the secondary market benchmark and 5 bps under the yield at the previous auction of the bonds two weeks earlier. 

The ÁKK sold HUF 18.5 bln of five-year bonds, raising the original offer by HUF 3.5 bln. Bids came to HUF 41.82 bln. The average yield was 1.98%, 9 bps over the benchmark and 20 bps over the yield two weeks earlier. 

The ÁKK sold HUF 10 bln of ten-year bonds, in line with the original offer. Bids reached HUF 29.65 bln. The average yield was 3.25%, 12 bps over the secondary market benchmark and 28 bps over the yield at the previous auction of the bonds on September 29. 

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