ÁKK sells HUF 40 bln of bonds at switch auction
The Government Debt Management Agency (ÁKK) sold a combined HUF 40 bln of bonds maturing in 2022 and 2024 for bonds expiring in 2019 at a switch auction on Wednesday, Hungarian news agency MTI reported.
The ÁKK sold HUF 20 bln of 2022/A bonds, accepting 2019/A bonds as payment. It also sold HUF 20 bln of 2024/B bonds, also for 2019/A bonds.
The scale of the sales was in line with the original plan, as the ÁKK offered to sell HUF 20 bln of bonds in both cases.
Demand from primary dealers for the 2022/A bonds came to HUF 34.97 bln. Demand for the 2024/B bonds was HUF 65.58 bln.
The 2022 bonds sold at an average yield of 2.19% at the exchange, while the 2024 bondsʼ average yield came to 3.04% at the switch auction. The average yield of the 2019/A bonds was 0.71%.
Of the closest secondary market benchmarks, the five-year benchmark calculated on 2022/B bonds was 2.24%, while the three-year benchmark calculated on 2020/C bonds was 1.57%.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.