ÁKK switch auction bond sales slightly below plan

Debt

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The Government Debt Management Agency (ÁKK) sold HUF 39 billion of bonds maturing in 2023 and 2028 at a switch auction on Wednesday, accepting bonds expiring in 2021 and 2022 as payment.

The ÁKK sold HUF 19 bln of 2023/B floating-rate bonds for 2021/A floating-rate bonds, just below its original offer of HUF 20 bln. Demand from primary dealers came to HUF 29.05 bln for the switch.

The ÁKK also sold HUF 20 bln of 2028/A bonds for 2022/A bonds, in line with its original offer. Bids reached HUF 34.29 bln. The 2028/A bonds sold at an average yield of 1.67%, while the average yield of the 2022/A bonds was 0.20%.

Of the closest secondary market benchmarks, the ten-year benchmark calculated on 2030/A bonds was 1.94%.

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