ÁKK sells HUF 39 bln of bonds at switch auction, below plan
The Government Debt Management Agency (ÁKK) sold HUF 39 billion of bonds maturing in 2026 and 2028 at a switch auction on Wednesday, accepting bonds expiring in 2020 as payment, state news wire MTI reported.
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 32.0 bln for the exchange.
The 2026/D bonds sold at an average yield of 3.27%, while the debt manager accepted the 2020/C bonds as payment at a fixed yield of 1.18%.
The ÁKK also sold HUF 19 bln of 2028/A bonds for 2020/A bonds, HUF 1 bln less than it originally offered. Bids reached HUF 26.2 bln. The ÁKK accepted the 2020/A bonds as payment at a yield of 1.33%.
Demand rose from the previous switch auction on August 8, when the ÁKK sold HUF 18.0 bln of 2026/D bonds at an average 3.33% yield but cancelled the 2028/A auction because of poor demand. The ÁKKʼs offer was the same then, at HUF 20 bln of each.
Of the closest secondary market benchmarks, the five-year benchmark calculated on 2024/C bonds was 2.87%, while the ten-year benchmark calculated on 2027/A bonds was 3.42%.
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