ÁKK plans moderate net HUF issues, big early buybacks in May-July

Debt

Hungaryʼs Government Debt Management Agency (ÁKK) plans net forint securities issues of HUF 285 billion, practically all in bonds, combined with big early bond repurchases of HUF 120 bln in May-July, a three-month issue plan posted on its website shows, Hungarian news agency MTI reported today.

Gross issues are planned at HUF 1.817 trillion and gross redemptions at HUF 1.532 tln for the three-month period. 

In addition to the HUF 120 bln early bond repurchases at six reverse auctions, the gross issues and redemptions include HUF 140 bln of bonds nearing expiry that ÁKK plans to exchange for long-term ones at the seven switch auctions in the period. 

There will not be any big HUF bond expiries in the period. 

Excluding the switch auctions, ÁKK plans gross bond issues of HUF 400 bln at the weekly bond auctions in May-July, where floaters will alternate with fixed-rate bonds, as before. 

ÁKK plans to offer HUF 690 bln of discount T-bills, only slightly over the HUF 684 bln of expiries in May-July.  

There will be net redemptions of three-month discount T-bills, with expiries of HUF 547 bln against new issues of HUF 470 bln. 

Twelve-month discount T-bill sales, at HUF 220 bln, will, in contrast, exceed the HUF 137 bln expiry of just one bill series, on June 8. 

Per auction offers of three-month discount T-bills will be scaled back to average a little more than HUF 35 bln and that of twelve-month bills to just over HUF 30 bln. At present, ÁKK offers HUF 40 bln of both maturities. 

The sale of interest-bearing T-bills designed for retail investors will match the HUF 481 bln of maturities, according to a technical assumption in the plan.

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