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ÁKK bond sales slightly below plan at switch auction

Debt

The Government Debt Management Agency (ÁKK) sold HUF 38.5 billion of bonds maturing in 2026 and 2028, accepting securities expiring in 2020 as payment, at a switch auction on Wednesday, state news wire MTI reported.   

The ÁKK sold HUF 18.5 bln of 2026/D bonds for 2020/C bonds, a little below its original offer of HUF 20 bln. Demand from primary dealers came to HUF 38.45 bln for the exchange.

The 2026/D bonds sold at an average yield of 3.56%. The average yield of the 2020/C bonds was 0.84%.

The ÁKK also sold HUF 20 bln of 2028/A bonds for 2020/A bonds, in line with the original offer. Bids reached HUF 28.74 bln. 

The 2028/A bonds sold at an average yield of 3.71%. The average yield of the 2020/A bonds was 0.88%.

Of the closest secondary market benchmarks, the three-year benchmark calculated on 2021/C bonds was 1.67%, the five-year benchmark calculated on 2024/C bonds was 3.11%, and the ten-year benchmark calculated on 2027/A bonds was 3.69%.

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