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ÁKK sells HUF 79 bln of bonds at auction, over plan

The Government Debt Management Agency (ÁKK) sold a combined HUF 79 billion of bonds at auction on Thursday, HUF 19 bln more than planned, state news wire MTI reports.

ÁKK accepted oversubscription for all three terms, even the 20-year bond which was on offer for the very first time.

ÁKK sold HUF 32 bln of five-year bonds, raising its original offer by HUF 7 bln after primary dealers bid for HUF 53.9 bln of the securities. The average yield was 1.2%, 3 bp over the secondary market benchmark and 2 bp higher than the yield at the previous auction of the bonds two weeks earlier.

ÁKK sold HUF 30 bln of 10-year bonds, HUF 10 bln more than planned. Bids came to HUF 62.9 bln. The average yield was 2.06%, 2 bp over the benchmark but 1bp under the yield at the auction two weeks earlier.

ÁKK sold HUF 17 bln of the new 20-year bond, HUF 2 bln over the plan. Dealersʼ bids reached HUF 31.8 bln. The average yield was 3.01 %.

The agency will not display a 20-year benchmark until the second auction of the bonds, in eight weeks, MTI says.