ÁKK sells HUF 26.5 bln of bonds at switch auction, below plan

Debt

The Government Debt Management Agency (ÁKK) sold a combined HUF 26.5 billion of bonds maturing in 2026 and 2028, accepting ones expiring in 2020 as payment, at a switch auction on Wednesday, below the combined planned sales of HUF 40 bln. 

The ÁKK sold HUF 6.5 bln of 2026/D bonds and HUF 20 bln of 2028/A bonds in exchange for 2020/C bonds. It had offered to sell HUF 20 bln of each of the 2026 and 2028 bonds.

Demand from primary dealers came to HUF 13.3 bln for the 2026/D bonds exchange, and HUF 26.98 bln for the 2028/A  exchange.

The 2020/C bonds sold at an average yield of 0.53% at the exchange. The average yield of the 2026/D bonds was 2.45%, while the 2028/A bondsʼ yield was 2.64%.

Of the closest secondary market benchmarks, the three-year benchmark calculated on 2021/C bonds was 0.86%, the five-year benchmark calculated on 2022/B bonds was 1.39%, and the ten-year benchmark calculated on 2027/A bonds was 2.59%.

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