ÁKK sells HUF 22.5 bln of bonds at switch auction, below plan
The Government Debt Management Agency (ÁKK) sold a combined HUF 22.5 billion of bonds maturing in 2026 for ones expiring in 2019 at a switch auction today, Hungarian news agency MTI reported.
ÁKK sold HUF 2.5 bln of 2026/D bonds, accepting 2019/A bonds as payment, and a further HUF 20 bln of the 2026/D bonds, accepting 2019/C bonds in exchange.
The scale of the sales was below the original offer, as ÁKK offered to sell HUF 20 bln of the 2026 bonds at each of the auctions.
Demand by primary dealers for the bonds came to HUF 4.75 bln for the 2019/A bonds exchange and HUF 29.95 bln for the 2019/C bonds exchange.
The 2026 bonds sold at an average yield of 3.09% at the exchange. The average yield of the 2019/A bonds was 0.21% and the yield of the 2019/C bonds was 0.32%.
Of the closest secondary market benchmarks, the ten-year benchmark calculated on 2027/A bonds was 3.09% and the three-year benchmark calculated on 2020/C bonds was 0.81%.
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