The Government Debt Management Agency (ÁKK) received a combined HUF 38.5 billion bids and sold the announced HUF 18 billion of 2020/A bonds, HUF 2 billion less than planned, in exchange of 2013/D and 2013/E bonds at an exchange auction on Wednesday.
The average yield of the 2020/A bonds was 7.24% if sold against 2013/D bonds and was 7.23% if sold against 2013/E bonds. The yields were between the two closest secondary market benchmark yields, the five-year benchmark, calculated on 2017/A bonds was 7.1%, and the ten-year benchmark, calculated on 2022/A bonds, was 7.37% on Tuesday.
The ÁKK sold HUF 8 billion of 2020/A bonds against HUF 8.219 billion 2013/D bonds, calculating the latter bonds as payments at a fixed net price translating into a yield of 6.01%. Total demand with payments of these bonds came to HUF 15.2 billion.
The 2013/D bonds mature on February 12, 2013, and have an annual coupon of 6.75% and were issued first in January 2002.
The ÁKK accepted the announced HUF 10 billion of the HUF 23.3 billion bids submitted to buy the 2020/A bonds for 2013/E bonds. It will receive HUF 9.862 billion of the bonds as payment from primary dealers. AKK calculated the 2013/E bonds as payment at a yield of 6.09%.
2013/E bonds which were offered first in September 2009, mature on October 24, 2013, and carry a 7.50% coupon.
The 2020/A bonds were first auctioned in February 2004, mature on November 12, 2020, and bear a 7.5% annual coupon.
At the previous bond exchange auction on June 8 the ÁKK offered and sold a combined HUF 20 billion of 2019/A bonds against the same two bonds. The average yield of the 2019/A bonds came to 7.01% when sold against sold against 2013/D bonds and was 6.99% if sold against 2013/E bonds at the June 8 auction. Demand totaled HUF 54.7 billion.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
