ÁKK sells HUF 56.5 bln of bonds, yields drop

Debt

The Government Debt Management Agency (ÁKK) sold a combined HUF 56.5 billion of bonds at auction on Thursday, HUF 11.5 bln over the plan on strong demand, according to Hungarian news agency MTI.

Yields fell on all terms, both compared to the previous auction and to Wednesdayʼs benchmarks.

The ÁKK sold HUF 18 bln of three-year bonds, sticking to the original offer despite more than threefold oversubscription. Primary dealers bid for HUF 75.2 bln of the papers. The average yield was 1.03%, 3 bps under the secondary market benchmark and 10 bps lower than the yield at the previous auction of the bonds two weeks earlier.

The ÁKK sold HUF 20.5 bln of five-year bonds, raising its original offer by HUF 5.5 bln after bids came to HUF 70.8 bln. The average yield was 2.04%, 6 bps under the benchmark and 12 bps lower than the yield at the auction two weeks earlier.

The ÁKK sold HUF 18 bln of ten-year bonds, HUF 6 bln more than it originally offered. Bids reached HUF 49.1 bln. The average yield was 3.24%, 6 bps under the benchmark, and 23 bps under the yield at the previous auction of the bonds held one month earlier.

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