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ÁKK sells HUF 22 bln of bonds at switch auction, below plan

Debt

Hungary’s Government Debt Management Agency (ÁKK) sold a combined HUF 22 billion of bonds maturing in 2024 and 2025 for bonds expiring in 2018 and 2019 at a switch auction today, according to Hungarian news agency MTI.

The ÁKK sold HUF 9 bln of 2024/B bonds, accepting 2018/A bonds as payment. The ÁKK also sold HUF 13 bln of 2025/B bonds for 2019/A bonds. 

The scale of the sales was below the original plan, as the ÁKK offered to sell HUF 20 bln of bonds in both cases.

Demand by primary dealers for the 2024/B bonds came to HUF 20.67 bln. Demand for the 2025/B bonds totaled HUF 27.14 bln.

The 2024 bonds sold at an average yield of 2.99% at the exchange, while the 2025 bondsʼ average yield came to 3.18% at the switch auction. The average yield of the 2018/A bonds was 0.36%, while that of the 2019/A bonds was 0.73%.

Of the closest secondary market benchmarks, the five-year benchmark, calculated on 2021/B bonds, was 1.94%, while the ten-year benchmark calculated on 2027/A bonds was 3.46%.

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