ÁKK raises three-month bill auction sales, yield sharply up

Debt

The Government Debt Management Agency (ÁKK) sold more than planned discount HUF 80 bln three-month T-bills in almost three-fold oversubscription at auction on Monday. 

Yields rose sharply both from the previous auction and from the latest secondary market benchmark.

 

ÁKK raised its sales from an originally offered HUF 60 bln. Primary dealers submitted bids for HUF 178.9 bln of the papers expiring on April 15.

 

Average yield was 1.84%, 31bp over the yield at the previous auction of the bills held on December 29 and was up 18bp from Monday's respective secondary market benchmark.

 

Yields moved in a wide range between 1.55% and 1.90%, suggesting that investors are uncertain about yield prospects.

 

Yields were rising now for the second auction from an all-time low of 1.33% on December 16.

 

ÁKK raised its three-month auction offer to HUF 60 bln already at the previous auction after gradually cutting it from HUF 50 bln in September to just HUF 20 bln by the middle of December. The reduced offers of the last three months of 2014, were part of steps to keep government debt as a percentage of GDP dropping as required both by domestic legislation and by the EU.

 

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