Hungary’s government debt management agency ÁKK received HUF 54.7 billion in bids and sold the announced HUF 20 billion of 2019/A bonds in exchange of 2013/D and 2013/E bonds at an exchange auction on Wednesday.
The average yield of the 2019/A bonds was 7.01% if sold against 2013/D bonds and was 6.99% if sold against 2013/E bonds. The yields were between the two closest secondary market benchmark yields, the five-year benchmark, calculated on 2017/B bonds was 6.89%, and the ten-year benchmark, calculated on 2022/A bonds, was 7.08% on Tuesday.
ÁKK sold the announced HUF 10 billion against HUF 9.975 billion 2013/D bonds. Total demand with payments of these bonds came to HUF 34.7 billion. The 2019/A bonds sold against these bonds, due in February 2013, at an average yield of 7.01%, with a range between 6.99% and 7.01%.
The 2013/D bonds mature on February 12, 2013, and have an annual coupon of 6.75% and were issued first in January 2002. ÁKK calculated 2013/D bonds as payment at a 5.89% yield.
ÁKK accepted the announced HUF 10 billion of the HUF 20 billion bids submitted to buy the 2019/A bonds for 2013/E bonds. It will receive HUF 9.566 billion of the bonds as payment from primary dealers. Average auction yield was 6.99% with a range of 6.96% to 7.01%.
2013/E bonds which were offered first in September 2009, mature on October 24, 2013, and carry a 7.50% coupon. ÁKK calculated the 2013/E bonds as payment at a yield of 5.95%.
The 2019/A bonds were first auctioned in February 2008, mature on June 24, 2019, and carry a 6.50% annual coupon.
At the previous bond exchange auction on March 30 ÁKK offered and sold a combined HUF 20 billion of 2019/A bonds against two bonds expiring in 2012. The average yield of the 2019/A bonds came to 7.15% at the March 30 auction where demand totaled HUF 62.4 billion.
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