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ÁKK sells HUF 38.5 bln of bonds at switch auction, below plan

The Government Debt Management Agency (ÁKK) sold HUF 38.51 billion of bonds maturing in 2026 and 2028, accepting ones expiring in 2021 as payment at a switch auction on Wednesday, Hungarian news agency MTI reports.

ÁKK sold HUF 20 bln of 2026/D bonds for 2021/C bonds, in line with its original offer. Demand by primary dealers came to HUF 53.50 bln for the exchange.

The 2026/D bonds sold at an average yield of 2.20%. The average yield of the 2021/C bonds was 0.40%.

ÁKK also sold HUF 18.51 bln of 2028/A bonds for 2021/B bonds, below its original offer of HUF 20 bln. Bids reached HUF 18.51 bln.

The 2028/A bonds sold at an average yield of 2.52%. The average yield of the 2021/B bonds was 0.60%.

Of the closest secondary market benchmarks the three-year benchmark calculated on 2022/C bonds was 1.04%, the five-year benchmark calculated on 2024/C bonds was 1.77% and the ten-year benchmark calculated on 2030/A bonds was 2.85%.