ÁKK sells planned HUF 45 bln bonds, yields rise

Debt

The Government Debt Management Agency (ÁKK) sold a combined HUF 45 bln of three-, five- and ten-year fixed-rate bonds at auction today, as planned, Hungarian news agency MTI said.

All three bonds were oversubscribed but demand fell, especially for the two longer terms, from the heights seen two weeks earlier. Yields rose sharply from the November 26 auction and were also up from Wednesdayʼs respective benchmarks.

Thursdayʼs big rises brought the auction yields back to levels last seen in the middle of September. The three-year yield surpassed 2% for the first time since the middle of August, and they all were ways over their respective bottom – of 1.52% for the three-year average auction yield, 2.30% for the five-year one and 3.29% for the ten-year one – reached in October.

ÁKK sold HUF 20 bln of the three-year bonds, as planned. Auction demand fell to HUF 54.4 bln from HUF 72.8 two weeks earlier. Average three-year yield was 2.08%, 3 bps up from the secondary market benchmark and 20 bps up from the average yield at the auction two weeks earlier.

ÁKK sold the announced HUF 15 bln of five-year bonds. Bids fell to HUF 18.8 bln from an unusually high HUF 88.2 bln on November 26. Average yield was 2.76%, 12 bps over Wednesdayʼs benchmark and 30 bps over the five-year yield at the previous auction.

ÁKK sold HUF 10 bln of the ten-year bonds, as planned. Bids reached HUF 17.4 bln, dropping from HUF 42 bln from two weeks earlier. Average yield was 3.58%, 11 bps over the benchmark and exceeding the average of the November 26 auction by 30 bps.

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