On strong demand, the Government Debt Management Agency (AKK) raised its offer for the two shorter terms at a bond auction on Thursday. Average auction yields were under the respective benchmarks.
AKK sold a combined HUF 60 billion of the three bonds instead of the originally announced HUF 45 billion at the auction, and sold another HUF 4.9 billion less than a fourth of the maximum available, at a non-competitive tender following the auction.
AKK sold HUF 30 billion of three-year bonds, HUF 10 billion more than planned. Primary dealers submitted bids for HUF 75.7 billion of the bonds. AKK sold another HUF 3.4 billion three-year bonds at the non-competitive tender where the total volume available of the bonds was HUF 11.0 billion. Average yield was 6.46%, 5bp under the secondary market benchmark and 4bp lower than the yield at the previous auction of the bonds two weeks earlier. Yields ranged between 6.45% and 6.48%.
AKK sold HUF 20 billion of five-year bonds, raising its original offer by HUF 5 billion after dealers bid for HUF 60.2 billion. Non-competitive sales totaled HUF 778 million, little more than one tenth the volume on offer. Average yield was 6.84%, 2bp under the secondary market benchmark but 5 bp over the yield at the previous auction also two weeks earlier. Yields ranged between 6.78% and 6.86%.
AKK sold HUF 10 billion of ten-year bonds, the announced amount. Offers came to HUF 22.5 billion. The debt manager sold another HUF 730 million, the available maximum at the non-competitive tender. Average yield was 7.08%, a single basis point under the secondary market benchmark but up 10 bp from the previous auction of the bonds on April 7. Yields ranged between 7.04% and 7.11%.
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