ÁKK switches HUF 75 bln short-term bonds to long-term at auction

Debt

The Government Debt Management Agency (ÁKK) sold primary dealers of government securities HUF 75 bln of bonds maturing in 2020 for bonds that run until 2016 and 2017 at a switch auction on Wednesday; HUF 25 bln less than planned.

The yields of the switch auctions exceeded the five-year yield on the secondary market.

ÁKK sold HUF 45 bln of 2020/A bonds for 2016/D bonds, HUF 5 bln less than the original offer after receiving bids for HUF 67.3 bln. Average auction yield was 2.43%.

ÁKK sold HUF 30 bln of 2020/A bonds for payments with 2017/B bonds, less than the HUF 50 bln original offer. Bids reached HUF 43.3 bln. Average auction yield was 2.44%.

ÁKK calculated 2016/D bonds as payment at a yield of 1.14% and accepted 2017/B bonds at a yield of 1.37%.

The yield of the bonds sold at the switch auction compare to a five-year secondary market yield of 2.34%.

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