ÁKK sells HUF 23.5 bln of bonds at switch auction, below plan
The Government Debt Management Agency (ÁKK) sold HUF 23.5 billion of bonds maturing in 2024 and 2026 for bonds expiring in 2020 at a switch auction on Wednesday, well below plan, state news agency MTI reported.
The ÁKK sold HUF 14 bln of 2026/D bonds for 2020/A bonds, below its original offer of HUF 20 bln. Demand from primary dealers came to HUF 21.79 bln for the exchange.
The 2026/D bonds sold at an average yield of 3.49%, while the average yield of the 2020/A bonds was 1.14%.
The ÁKK also sold HUF 9.5 bln of 2024/B bonds for 2020/C bonds, also below its original offer of HUF 20 bln, after bids reached only HUF 17.60 bln.
The 2024/B bonds sold at an average yield of 2.84%, while the average yield of the 2020/C bonds was 1.05%.
Of the closest secondary market benchmarks, the three-year benchmark calculated on 2021/C bonds was 1.72%, the five-year benchmark calculated on 2024/C bonds was 3.00%, and the ten-year benchmark calculated on 2027/A bonds was 3.58%.
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