ÁKK sells HUF 40 bln of bonds at switch auction, as planned

Debt

Hungary’s Government Debt Management Agency (ÁKK) sold a combined HUF 40 bln of bonds maturing in 2022 and 2024 for bonds expiring in 2018 at a switch auction today (Wednesday), Hungarian news agency MTI reported.

The ÁKK sold HUF 20 bln of 2022/A bonds, accepting 2018/B bonds as payment. The ÁKK also sold HUF 20 bln of 2024/B bonds for 2018/C bonds. The scale of the sales was in line with the original plan in both cases. 

Demand by primary dealers for the 2022/A bonds came to HUF 33.06 bln. Demand for 2024/B bonds was HUF 32.06 bln. 

The 2022 bonds sold at an average yield of 2.00% at the exchange, while the 2024 bonds average yield came to 2.60% at the switch auction.  

Of the closest secondary market benchmarks, the five-year benchmark, calculated on 2021/B bonds, was 1.80% and the ten-year benchmark calculated on 2027/A bonds was 2.88%.

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