ÁKK switch auction bond sales fall below plan

Debt

The Government Debt Management Agency (ÁKK) sold HUF 19.5 billion of bonds maturing in 2026 and 2028, accepting bonds expiring in 2021 as payment, at a switch auction on Wednesday.

The ÁKK sold HUF 10 bln of 2026/D bonds for 2021/C bonds, below its original offer of HUF 20 bln. Demand from primary dealers came to HUF 12.42 bln for the exchange.

The 2026/D bonds sold at an average yield of 2.07%. The average yield of the 2021/C bonds was 0.37%.

The ÁKK also sold HUF 9.5 bln of 2028/A bonds for 2021/B bonds, also below its original offer of HUF 20 bln, after bids reached HUF 15.55 bln.

The 2028/A bonds sold at an average yield of 2.37%. The average yield of the 2021/B bonds was 0.54%.

Of the closest secondary market benchmarks, the three-year benchmark calculated on 2022/C bonds was 0.89%, the five-year benchmark calculated on 2024/C bonds was 1.53%, and the ten-year benchmark calculated on 2030/A bonds was 2.61%.

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.

Support the BBJ

Finance