ÁKK sells HUF 47 billion of bonds at switch auction

Debt

The Government Debt Management Agency (ÁKK) sold primary dealers HUF 47 billion of bonds maturing in 2022 and 2023 in exchange for a bond maturing in 2015 at a switch auction on Wednesday. Combined sales were HUF 3 billion below the original offer but were still the highest volume ÁKK sold at a switch auction.

Oversubscription was moderate but yields still fell more than 20bp from the previous exchange auction on May 7. ÁKK raised the offer of the two long bonds to HUF 50 billion from HUF 30 billion at the previous auction that was more than double oversubscribed.

ÁKK sold the planned HUF 25 billion of 2022/A bonds against 2015/C bonds at an average yield of 4.82%. The average yield was down 23bp from the previous switch auction held two weeks earlier. Bids for the bonds came to HUF 30 billion, down from HUF 33.5 billion on May 7.

ÁKK sold HUF 22 billion of 2023/A bonds against 2015/C bonds, HUF 3 billion less than planned. Bids came to HUF 26 billion, dropping more than HUF 10 billion from the previous action. The average yield came to 4.89%, dropping 24bp from May 7.

Of the closest benchmark, the five-year benchmark, calculated on 2019/A bonds stood at 4.01% and the ten-year yield, calculated on 2025/B bonds, was 5.04% on Tuesday. ÁKK accepted 2015/C bonds as payment for both bonds at a fixed yield of 2.31%.

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