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ÁKK bond sales over plan on strong demand for longer terms

Debt

The Government Debt Management Agency (ÁKK) sold a combined HUF 88.5 billion of bonds at auction on Thursday, HUF 18.5 bln more than planned due to strong demand for the longer terms, state news agency MTI reported.

The ÁKK sold HUF 25.0 bln of three-year bonds, as planned. Primary dealers bid for HUF 27.4 bln of the securities, and the average yield was 1.46%.

The yield on the three-year secondary market benchmark, which matures more than one year earlier, was 0.94% on Thursday, while the yield on the three-year bond sold at the previous auction two weeks earlier (also the three-year 2021/C benchmark) was 1.03%.

The ÁKK also sold HUF 33.5 bln of five-year bonds, raising its original offer by HUF 8.5 bln after bids reached HUF 79.5 bln. The average yield was 2.21%, 2 basis points over the secondary market benchmark, but 2 bps under the yield at the previous auction of the bonds two weeks earlier.

Finally, the ÁKK sold HUF 30.0 bln of ten-year bonds, HUF 10.0 bln over plan. Bids came to HUF 40.4 bln, and the average yield was 3.16%, 49 bps over the secondary market benchmark, which matures almost three years earlier, but just 2 bps higher than the yield when the same bond was sold at auction two weeks earlier.

In addition, the ÁKK sold a further HUF 12.9 bln of five-year and HUF 6.4 bln of ten-year bonds at a non-competitive tender after the auction.

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