ÁKK sells HUF 34.5 bln of bonds at switch auction, below plan

Debt

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The Government Debt Management Agency (ÁKK) sold HUF 34.5 billion of bonds maturing in 2026 and 2028, accepting bonds expiring in 2020 as payment, at a switch auction on Wednesday, state news wire MTI reported.   

The ÁKK sold HUF 14.5 bln of 2026/D bonds for 2020/C bonds, below its original offer of HUF 20 bln. Demand from primary dealers came to HUF 19.58 bln for the exchange.

The 2026/D bonds sold at an average yield of 2.85%. The average yield of the 2020/C bonds was 0.50%.

The ÁKK also sold HUF 20 bln of 2028/A bonds for 2020/A bonds, in line with its original offer. Bids reached HUF 42.59 bln. 

The 2028/A bonds sold at an average yield of 2.98%. The average yield of the 2020/A bonds was 0.58%.

Of the closest secondary market benchmarks, the three-year benchmark calculated on 2021/C bonds was 1.23%, the five-year benchmark calculated on 2024/C bonds was 2.39%, and the ten-year benchmark calculated on 2027/A bonds was 2.91%, MTI noted.

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