ÁKK sells HUF 50 bln of bonds at switch auction, as planned

Debt

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The Government Debt Management Agency (ÁKK) sold a combined HUF 50 bln of bonds maturing in 2025 and 2026 for bonds expiring in 2019 at a switch auction today, Hungarian news agency MTI reported.

The ÁKK sold HUF 20 bln of 2025/B bonds, accepting 2019/A bonds as payment, and a further HUF 30 bln of 2026/D bonds, accepting 2019/C bonds in exchange. 

The scale of the sales was in line with the original offer, as the ÁKK had offered to sell a combined HUF 50 bln of 2025 and 2026 bonds.

Demand by primary dealers for the bonds came to HUF 39.9 bln for the 2019/A bonds exchange, and HUF 51.41 bln for the 2019/C bonds exchange.

The 2025 bonds sold at an average yield of 2.62% at the exchange, and the 2026 bonds for an average yield of 2.95%. The average yield of the 2019/A bonds was 0.20% and the yield of the 2019/C bonds was 0.29%.

Of the closest secondary market benchmarks, the ten-year benchmark calculated on 2027/A bonds was 2.98%, the five-year benchmark on 2022/B bonds was 1.79%, and the three-year benchmark calculated on 2020/C bonds was 0.77%.

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