ÁKK sells HUF 29 bln of bonds at switch auction

Debt

The Government Debt Management Agency (ÁKK) sold HUF 29 billion of bonds maturing in 2026 and 2028, accepting bonds expiring in 2020 as payment, at a switch auction on Wednesday. Bids for the longer-term securities fell below the offered amount.

The ÁKK sold HUF 20 bln of 2026/D bonds for 2020/C bonds, in line with its original offer. Demand from primary dealers came to HUF 23.6 bln for the exchange. The 2026/D bonds sold at an average yield of 2.73%, while the 2020/C bonds were accepted at a fixed yield of 0.12% in the exchange.

The ÁKK also sold HUF 9 bln of 2028/A bonds for 2020/A bonds, down HUF 11 bln from its original offer. Bids reached HUF 17.5 bln. The 2028/A bonds sold at an average yield of 3.06%. The yield of the 2020/A bonds was fixed at 0.15%.

The five-year benchmark yield on 2024/C bonds was 2.12% on Tuesday. The ten-year benchmark yield on 2038/A bonds was 3.21%.

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