ÁKK sells HUF 18 bln of bonds at switch auction, below plan
The Government Debt Management Agency (ÁKK) sold HUF 18 billion of bonds maturing in 2026 at a switch auction on Wednesday, accepting bonds expiring in 2020 as payment, state news agency MTI reported.
The ÁKK sold HUF 18 bln of 2026/D bonds for 2020/B bonds. It had originally offered to sell HUF 20 bln of the 2026/D bonds. Demand from primary dealers came to HUF 22.85 bln for the exchange.
The 2026/D bonds sold at an average yield of 3.33%. The average yield of the 2020/B bonds was 0.99%.
The ÁKK also planned to sell HUF 20 bln of 2028/A bonds for 2020/C bonds, but as bids only reached HUF 5.1 bn, the agency accepted no bids and cancelled the auction.
Of the closest secondary market benchmarks, the three-year benchmark calculated on 2021/C bonds was 1.58%, while the ten-year benchmark calculated on 2027/A bonds was 3.35%.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.