ÁKK exchanges HUF 40 bln of bonds at switch auction, as planned

Debt

The Government Debt Management Agency (ÁKK) sold HUF 40 bln of bonds maturing in 2024 and 2025 for ones that expire in 2017 and 2018 at a switch auction today, in line with the plan, Hungarian news agency MTI reported.

ÁKK sold HUF 20 bln of 2024/B bonds accepting 2017/A bonds as payment and a further HUF 20 bln of 2025/B bonds for 2018/B bonds. 

Primary dealers bid to buy HUF 25.0 bln bonds expiring in 2024 and HUF 36.1 bln for the 2025/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 2.73% for the 2025/B bonds, both down from the same exchanges two weeks earlier.

Of the closest secondary market benchmarks, the five-year benchmark, calculated on 2021/B bonds, was 2.04% and the ten-year benchmark, calculated on 2027/A bonds, was 2.91% on Tuesday.

ÁKK calculated the 2017/A bonds which expire on November 24, 2017 at a yield of 0.83% as payment. It took 2018/B bonds expiring on January 15, 2018 at a yield of 1.12%.

The twelve-month secondary market yield was 0.94% on Tuesday. 

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