ÁKK exchanges HUF 30 bln of bonds at switch auction, less than planned
The Government Debt Management Agency (ÁKK) sold HUF 30 bln of bonds maturing in 2024 and 2028 for ones that expire in 2017 and 2018 at a switch auction on Wednesday, under the HUF 40 bln plan.
ÁKK sold HUF 14.5 bln of 2024/B bonds accepting 2017/A bonds as payment and a further HUF 15.5 bln of 2028/A bonds for 2018/B bonds.
Bids by primary dealers reached HUF 39.31 bln for buying the bonds expiring in 2024 and HUF 34.25 bln for the 2028/B exchange.
ÁKK had planned to exchange HUF 20 bln for both the 2017/A bonds and the 2018/B bonds.
The 2024 bonds sold at an average yield of 2.69% at the exchange and the average was 3.09% for the 2028/B bonds. Of the closest secondary market benchmarks, the five-year benchmark, calculated on 2021/B bonds, was 2.15% and the ten-year benchmark, calculated on 2027/A bonds, was 3.04% on Tuesday.
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