ÁKK sells announced volume of bonds, auction yields little changed

Debt

 Demand for the two shorter bonds dropped from the unusually high levels of the previous auction on July 14 but slightly rose for the ten-year bonds. The three-year average auction yield was at and the two longer-term yields were slightly above Wednesday's respective benchmarks.

National agency managing sovreign debt ÁKK sold HUF 20 billion of three-year 2014/D bonds, the announced volume after primary dealers submitted bids for HUF 43.8 billion. Demand fell from HUF 79.9 billion at the previous auction when ÁKK raised its offer by HUF 5 billion to HUF 25 billion.

Average yield at the auction was 6.57%, the same as the secondary market benchmark on Wednesday and 7 basis point lower than the yield at the previous auction of the bonds. Yields ranged between 6.50% and 6.58%.

ÁKK sold the announced HUF 15 billion of 2017/A bonds, its five-year benchmark, after receiving bids for HUF 38.4 billion. Auction bids were down from HUF 59.5 billion two week earlier when ÁKK raised its sales to HUF 20 billion.

The five-year bonds sold at an average yield of 7.12%, 1 basis point under the benchmark and unchanged from the average of the previous auction. Accepted yields varied between 7.10% and 7.14%.

    ÁKK sold HUF 10 billion of the 2022/A ten-year bonds, in line with the original offer. Dealers bid for HUF 28.7 billion, up from HUF 26.3 billion two weeks earlier.

Average yield was 7.40%, 2 basis points up from the secondary market benchmark and 3 basis points over the yield at the previous auction of the bonds four weeks earlier. Yields ranged between 7.39% and 7.41%.

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