ÁKK: Retail government securities stock rises despite large bond expiry

Debt

The stock of government securities designed for the general public rose HUF 7 bln in January despite a big, HUF 96 bln expiry of inflation-pegged PMAK bonds issued three years earlier, the Government Debt Management Agency (ÁKK) said yesterday.

The stock reached HUF 2.418 trillion at the end of January.

The stock of Bonusz retail bonds, pegged to money market rates, rose HUF 15 bln exclusively thanks to household purchases in January, ÁKK said.

Although retail securities are designed for households, non-profit organisations may buy them, and institutional investors may purchase them on the secondary market, and last year, and these non-retail investors accounted for more than half of the HUF 723 bln increase in the stock last year.

Small investors bought HUF 86 bln of the new PMAK series which pays a 3 percentage-point premium over inflation. The expiring PMAK paid a 5pp premium.

The stock of Bonusz bonds reached HUF 387 bln, that of PMAK bonds stood at HUF 545 bln and the stock of the so-called Baby bonds stood at HUF 11 bln at the end of January.

The stock of the most popular treasury bills, the interest-bearing bills fell HUF 5 bln to HUF 1.084 trillion.

The stock of Hungarian Premium Euro Bond (PEMAK) bonds stood at €2.5 bln at the end of January, ÁKK said. PEMAK bonds were introduced as the first foreign-currency-denominated government bonds on sale domestically in November 2012.

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