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ÁKK sells HUF 9.5 bln of bonds at switch auction, below plan

Debt

The Government Debt Management Agency (ÁKK) sold a combined HUF 9.5 billion of bonds maturing in 2024 and 2026 at a switch auction on Wednesday, accepting bonds expiring in 2020 as payment, state news wire MTI reported.   

The ÁKK sold HUF 4 bln of 2024/B bonds for 2020/B bonds, and also HUF 5.5 bln of 2026/D bonds for 2020/C bonds. It had offered to sell HUF 20 bln each of the 2024/B and 2026/D bonds.

Demand from primary dealers came to HUF 12.3 bln for the exchange with the 2020/B bonds, and HUF 18.7 bln for the 2020/C bond exchange.

The 2024/B bonds sold at an average yield of 2.72% at the exchange, while the average yield of the 2026/D bonds was 3.42%. The yields on the 2020/B and 2020/C bonds were 1.21% and 1.41%, respectively.

Of the closest secondary market benchmarks, the three-year benchmark calculated on 2021/C bonds was 1.87%, the five-year benchmark calculated on 2022/B bonds was 2.27%, and the ten-year benchmark on 2027/A bonds was 3.55%.

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