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ÁKK sells more than planned 3- and 10-year bonds at auction

Debt

The Government Debt Management Agency (ÁKK) raised its sale of three- and ten-year bonds and sold the originally offered amount of five-year bonds at a bond auction, Hungarian news agency MTI reported today. Auction yields fell sharply further, but were well over the respective levels on the secondary market.

Demand for each bond fell but the auction was still three times oversubscribed. Combined auction sales totalled HUF 75 bln against the HUF 60 bln origianal offer.

ÁKK sold HUF 25 bln of the three-year bonds, raising its original offer by HUF 5 bln after primary dealers bid for HUF 67.5 bln of the papers. At the previous auction on October 2 ÁKK raised its sales by HUF 10 bln to HUF 30 bln after receiving bids for HUF 85.2 bln.

Average three-year yield was 2.96%, 13bp over the secondary market benchmark and 11bp lower than the yield at the previous auction of the bonds. Yields ranged between 2.95% and 3.00%.

ÁKK sold the planned HUF 20 bln of five-year bonds. Bids came to HUF 39.8 bln. Demand fell from HUF 51 bln two weeks earlier then sales were raised to HUF 30 bln.

Average five-year yield was 3.61%, 22bp over the secondary market benchmark, which matures earlier, but 8bp down from the yield two weeks earlier. Yields ranged between 3.55% and 3.64%.

The ten-year bond sold HUF 30 bln against an offer of HUF 20 bln and bids for HUF 54.2 bln. ÁKK raised its offer by HUF 7.5 bln on bids of HUF 66 bln at the previous auction. Average yield was 4.22%, 27bp over the benchmark and 32bp under the yield at the previous auction. Yields ranged between 4.17% and 4.23%.

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