ÁKK securities, switch sales fall short of plan


The Government Debt Management Agency (ÁKK) sold a combined HUF 21 billion of securities at auction on Thursday, lowering its original offer by HUF 24 bln.  Sales at a switch auction Wednesday also fell short of plan.

The ÁKK sold HUF 15.0 bln of 12-month discount T-bills on Thursday, HUF 25 bln below its original offer. Bids came to HUF 26.93 bln, and the average yield was 0.40%, 6 basis points over the secondary market benchmark and 12 bps higher than the yield at the previous auction of the bills two weeks earlier.

In addition, the ÁKK sold HUF 6 bln of five-year floating-rate bonds, raising its offer by HUF 1 bln after dealers bid for HUF 9.53 bln of the papers.

Earlier, at a switch auction Wednesday, the ÁKK sold HUF 10.5 bln of bonds maturing in 2026, accepting bonds expiring in 2019 as payment.

The ÁKK had offered to sell HUF 20 bln of the 2026/D bonds. Demand from primary dealers came to HUF 16.5 bln for the exchange with the 2019/C bonds.

The 2019/C bonds sold at an average yield of 0.42% at the completed exchange. The average yield of the 2026/D bonds was 3.26%.

Of the closest secondary market benchmarks, the three-year benchmark calculated on 2021/C bonds was 1.27%, while the five-year benchmark calculated on 2022/B bonds was 1.84%.

(The agency had also planned to exchange HUF 20 bln of 2024/B bonds for 2019/A bonds, but as demand by primary dealers only reached HUF 3 bln, it cancelled this auction. )


Business Sentiment Up, Consumer Confidence Down in September Analysis

Business Sentiment Up, Consumer Confidence Down in September

Horthy Statue to be Unveiled in Parliament Parliament

Horthy Statue to be Unveiled in Parliament

UPS Appoints Regional Director Appointments

UPS Appoints Regional Director

Completion of Metro Line M3 Renovation Delayed City

Completion of Metro Line M3 Renovation Delayed


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.