ÁKK sells HUF 50 bln of bonds at switch auction, as planned
Hungary’s Government Debt Management Agency (ÁKK) sold a combined HUF 50 bln of bonds maturing in 2022 and 2024 for bills expiring in 2020 and 2018 at a switch auction today, Hungarian news agency MTI reported.
The ÁKK sold HUF 30 bln of 2022/A bonds, accepting 2020/A 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 62.20 bln. Demand for 2024/B bonds was HUF 20.29 bln.
The 2022 bonds sold at an average yield of 1.98% at the exchange, while the 2024 bondsʼ average yield came to 2.64% at the switch auction. The average yield of the 2020/A bonds was 1.49% and that of the 2018/c bonds was 0.55%.
Of the closest secondary market benchmarks, the five-year benchmark, calculated on 2021/B bonds, was 1.80% and the three-year benchmark calculated on 2019/c bonds was 1.17%.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
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.