ÁKK switch auction bond sales fall short of plan

Debt

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The Government Debt Management Agency (ÁKK) sold HUF 37.50 billion of bonds maturing in 2026 and 2028, accepting bonds expiring in 2020 as payment, at a switch auction on Wednesday, state news wire MTI reported.   

The ÁKK sold HUF 18.0 bln of 2026/D bonds for 2020/B bonds, below its original offer of HUF 20 bln. Demand from primary dealers came to HUF 32.54 bln for the exchange. The 2026/D bonds sold at an average yield of 2.84%, while the average yield of the 2020/B bonds was 0.53%.

The ÁKK also sold HUF 19.50 bln of 2028/A bonds for 2020/C bonds, likewise below its original offer of HUF 20 bln. Bids reached HUF 39.31 bln. The 2028/A bonds sold at an average yield of 3.02%. The average yield of the 2020/C bonds was 0.54%.

Of the closest secondary market benchmarks, the yield was 1.23% for three-year benchmark 2021/C bonds, 2.37% for five-year 2024/C bonds, and 2.96% for ten-year 2027/A bonds.

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