ÁKK sells planned volume of bonds despite high demand, yields drop
Hungaryʼ sGovernment Debt Management Agency (ÁKK) sold the announced HUF 45 billion of bonds at auction today despite strong oversubsciption, Hungarian news agency MTI reported.
Yields dropped as a result both compared to the previous auction and Wednesdayʼs secondary market benchmarks.
The three-year average auction yield dropped to a new all-time low, and yields dropped for the first time since the end of September or early October.
ÁKK sold HUF 20 bln of three-year bonds, as planned. Primary dealers bid for HUF 85.0 bln of the papers. Average yield was 1.03%, 9 bps under the secondary market benchmark and 19 bps under the yield at the previous auction of the bonds two weeks earlier.
ÁKK sold HUF 15 bln of five-year bonds, in line with the original offer. Bids came to HUF 83.3 bln. Average yield was 1.94%, 9 bps under the benchmark and 24 bps under the yield two weeks earlier.
ÁKK sold HUF 10 bln of ten-year bonds, also in line with the original offer. Bids reached HUF 66.7 bln. Average yield was 3.30%, 11 bps under the secondary market benchmark and 21 bps under the yield at the previous auction of the bonds.
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