AKK buys back HUF 1.2bn bonds as interest in reverse auction drops

Debt

The Government Debt Management Agency (AKK) repurchased HUF 1.2 billion of bonds before their maturity in 2012 at a reverse auction on Wednesday; combined offers dropped to HUF 1.3 billion from HUF 25.2 billion at the previous early buyback on August 24 of which AKK accepted just HUF 2.6 billion.

AKK refused the HUF 69 million offers it received from primary dealers for the early redemption of 2012/B bonds which mature on June 12, 2012. Offers dropped sharply from HUF 11.5 billion two weeks earlier when AKK bought back just HUF 650 million of the bonds at an average repurchase yield of 5.77%.

AKK bought back HUF 1.2 billion of 2012/C bonds which mature on October 24, 2012. Dealers offered HUF 1.3 billion of the bonds, again sharply down from the HUF 13.7 billion offers on August 24 of which it accepted HUF 1.9 billion. 

The average auction yield of the 2012/C bonds was 5.87%, again down from 6.10% two weeks earlier.

The twelve-month secondary market benchmark yield was 5.63% on Wednesday, down from 5.86% on August 24.

The auction was the 14th reverse auction held this year, and raised the volume bought back at this year's reverse auctions to HUF 134 billion, Econews calculated.

ADVERTISEMENT

Varga puts 2021 GDP growth at 7-7.5% Analysis

Varga puts 2021 GDP growth at 7-7.5%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New managing director at the helm of Wolt Hungary Appointments

New managing director at the helm of Wolt Hungary

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 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.