Bigger offer of three-month T-bills 1.5 times oversubscribed at auction


A higher volume compared to the previous auctions of discount three-month T-bills was oversubscribed by a factor of 1.5 at an auction of by the Government Debt Management Agency (ÁKK) on Tuesday.

Yields were slightly under Friday's benchmark and rose a tad from a week earlier.

ÁKK sold the announced HUF 40bn of the bills due on February 1, 2012, after receiving bids for HUF 62.8bn. Bids for a lower, HUF 30bn offer reached HUF 69.9bn at the previous auction on October 18.

The debt manager raised the announced per-auction volume by HUF 10bn for the current auction after reducing it to HUF 30bn from HUF 50bn at the September 27 auction when it started offering three-month bills expiring in 2012.

Average yield at the auction was 6.05%, 2bp lower than the secondary market benchmark, calculated on bills expiring on March 7 next year, and 2bp higher than the average yield at the previous auction.

The yield range widened, to between 5.90% and 6.08% after narrowed to between 5.98% and 6.05% one week earlier.

The rate of oversubscription on Tuesday was similar to a liquidity bill auction held on Monday where ÁKK received HUF 87.7bn bids for the HUF 50bn discount T-bills offered. It sold the bills expiring on December 21 at an average yield of 6.03%. ÁKK held a liquidity bill auction, which are invited on a case-by-case basis, depending on the Treasury's liquidity needs, for the first time since the beginning of June.

Demand at the three-month discount T-bill auctions has dropped under earlier levels since the beginning of October, when the average three-month auction yield surpassed 6% for the first time since late 2009.

ÁKK has increased the gross three-month discount T-bill issues planned for October-December by HUF 100bn to HUF 490bn in its recently modified issue plan for the period. It also reduced Q4 expiries by HUF 10bn to HUF 572bn.

Zwack Profit Falls 16% Figures

Zwack Profit Falls 16%

EC Advances Infringement Procedure Over Hungary's Sovereignt... EU

EC Advances Infringement Procedure Over Hungary's Sovereignt...

Hell Energy Inaugurates HUF 80 bln Capacity Expansion Manufacturing

Hell Energy Inaugurates HUF 80 bln Capacity Expansion

Puskás Arena to Host 2026 Champions League Final In Budapest

Puskás Arena to Host 2026 Champions League Final


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.