ÁKK sells HUF 36 bln of bonds at switch auction, below plan

Debt

The Government Debt Management Agency (ÁKK) sold a combined HUF 36 billion of bonds maturing in 2026 for bonds expiring in 2019 at a switch auction on Wednesday, according to state news wire MTI.   

The ÁKK sold HUF 20 bln of 2026/D bonds, accepting 2019/A bonds as payment, and also a further HUF 16 bln of 2026/D bonds, accepting 2019/C bonds in exchange.

The scale of the sales was somewhat below the original offer, as the ÁKK had offered to sell a combined HUF 40 bln of 2026/D bonds.

Demand by primary dealers for the bonds came to HUF 26.70 bln for the 2019/A bonds exchange, and HUF 23.40 bln for the 2019/C bonds exchange.

The 2026 bonds sold at an average yield of 3.02% at the exchange. The average yield of the 2019/A bonds was 0.18%, while the yield of the 2019/C bonds was 0.26%.

Of the closest secondary market benchmarks, the ten-year benchmark calculated on 2027/A bonds was 3.03%, while the three-year benchmark calculated on 2020/C bonds was 0.80%.

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