ÁKK sells HUF 50 bln of six-week T-bills, over plan
The Government Debt Management Agency (ÁKK) sold HUF 50 billion of discount six-week T-bills at a liquidity auction on Monday, raising its original offer by HUF 10 bln on high demand.
Primary dealers bid for HUF 108.64 bln of the papers. The average yield was 0.01%, 5 basis points over the three-month secondary market benchmark and 1 bp higher than the average yield at the previous liquidity auction held a week earlier.
The liquidity discount T-bills are designed to manage the central governmentʼs short-term liquidity needs, and, accordingly, are auctioned on a case-by-case basis, noted state news wire MTI. The bills expire on December 27, after the big year-end tax payment deadlines but before the end of the calendar year, thus providing liquidity without raising year-end government debt.
The ÁKK tends to keep year-end issues low and repayments high to keep the year-end gross state debt ratio on a declining trend, as required by law, noted MTI.
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