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ÁKK plans big net short-term issuance in Oct-Dec

Debt

The Government Debt Management Agency (ÁKK) plans net forint security issues of HUF 240 billion in October-December, nearly all in three-month T-bills, the issue plan for the period posted on the ÁKK website shows, as reported by state news wire MTI.   

Gross issues are planned at HUF 1.157 trillion and gross redemptions at HUF 917 bln for the three-month period.

Net issues of three-month discount T-bills will reach HUF 230 bln at the 13 auctions in the period, according to the issue plan. Five of the auctions have already taken place, with net issues of HUF 45 bln. This leaves HUF 185 bln, with an average net issue of HUF 23 bln and gross issue of HUF 38 bln per auction, at the remaining eight auctions.

The debt manager initially accepted oversubscription at its three-month discount T-bill auctions, then raised the previous HUF 15 bln three-month bill offer, first to HUF 25 bln then to HUF 40 bln. Some analysts speculate that the rises were connected to the slow pace of EU transfers and advance payments made to funding recipients by the government.

Twelve-month discount T-bill sales are planned at HUF 232 bln, slightly over the HUF 210 bln expiries.

Bond issues are planned at HUF 500 bln and bond expiries at HUF 512 bln. Expiries will include the maturing of HUF 290 bln of 2017/A bonds on November 24 and HUF 222 bln of 2017/C bonds on December 20.

The ÁKK plans no early repurchase or switch auctions during the period.  It will offer floating-rate bonds and fixed-rate bonds on alternate weeks during the period, as before.

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