ÁKK raises auction sale of longer bonds

Debt

The Government Debt Management Agency (ÁKK) sold more than planned five- and ten-year bonds and sold the announced volume of three-year bonds at an auction on Thursday. ÁKK sold a combined HUF 61 bln of bonds at the auction, HUF 6 bln more than planned.

Demand was more than double of the offer. Yields fell from the previous auction and were slightly under Wednesday's respective benchmarks.

The original offer was unchanged while demand and sales fell from the previous auction two weeks earlier, which was more than three times oversubscribed. ÁKK sold HUF 77.5 bln bonds at the November 13 auction and a further HUF 27.6 bln at the ensuing non-competitive tender at dropping yields.

ÁKK sold the planned HUF 20 bln of three-year bonds after primary dealers bid for HUF 46.9 bln of the papers. Average yield was 2.56%, 2 bp under the secondary market benchmark and 14 bp lower than the yield at the November 13 auction. Yields ranged between 2.52% and 2.57%.

ÁKK sold HUF 23 bln of five-year bonds, HUF 3 bln more than planned after receiving bids for HUF 43.8 bln of the papers. Average yield was 2.97%, dropping below 3% for the first time, and was just 1 bp under the benchmark and 8 bp lower than the yield at the auction two weeks earlier. Yields ranged between 2.93% and 2.99%.

Sales of the ten-year bond came to HUF 22.5 bln, HUF 3 bln more than the original offer. Bids reached HUF 36.8 bln. Average yield was 3.54%, 2 bp under the benchmark and 12 bp lower than the ten-year yield two weeks earlier. Yields ranged between 3.51% and 3.55%.

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