ÁKK buys back HUF 71 bln in bonds at year's first reverse auction

Debt

The Government Debt Management Agency (ÁKK) bought back a combined HUF 71.0 bln of bonds before their maturity in 2015 and 2016 at a reverse auction on Wednesday.

The auction was the first early buyback held since December. ÁKK's three-month issue plan published in February already revealed that ÁKK will restart regular reverse auctions in March, one month earlier than planned in the middle of January. The restart indicated that the State Treasury's deposits had been replenished after being reduced by year-end to prevent a rise in the state debt ratio.

Demand was high at a combined HUF 83.4 bln, and offers focused on the bond expiring in August of this year. ÁKK accepted a relatively high portion of the offers. The repurchase yields were under the closest secondary market yields.

ÁKK accepted HUF 49.5 bln of bids of the HUF 53.7 bln submitted by primary dealers for the early redemption of 2015/C bonds, which mature on August 24, 2015. Average yield was 1.55%, down 5bp from the six-month secondary market yield.

ÁKK received HUF 21.5 bln bids for the early redemption of 2016/C bonds of which it accepted HUF 29.7 bln. The bonds mature on February 12, 2016. Average repurchase yield was 1.42%, down 21bp from Tuesday's twelve-month secondary market benchmark.

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