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ÁKK cuts three-month bill sale, sending yield below zero

Debt

The Government Debt Management Agency (ÁKK) sold HUF 30 billion of discount three-month Treasury bills at auction on Tuesday, cutting its original offer by HUF 10 bln despite double subscription, state news wire MTI reported.   

Limiting demand pushed the average yield into negative territory for the first time since the end of October. The average yield was minus 0.03%, 3 basis points under the secondary market benchmark, and 4 bps lower than the yield at the previous auction of the bills one week earlier.   

Primary dealers bid for HUF 68.3 bln of the securities expiring on March 21, 2018. The ÁKK accepted seven of the 33 bids it received.   

Yields - and probably less financing pressure, coupled with more focus on year-end state debt - could have been a consideration at Mondayʼs six-week liquidity bill auction, where the debt manager sold no bills despite three-fold demand for the HUF 30 bln bills on offer, noted MTI.

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