Demand for short-term bonds to long-term ones drops

Debt

The Government Debt Management Agency (ÁKK) sold primary dealers HUF 26 bln of government bonds maturing in 2022 and 2024 for bonds that run until 2016 and 2017 at a switch auction on Wednesday. Auction sales were HUF 39 bln less than planned.

ÁKK sold HUF 8 bln of 2022/A bonds for payments with 2016/D bonds, less than the HUF 25 bln original offer. Bids reached HUF 17.8 bln. Average auction yield was 3.34%.

ÁKK sold HUF 18 bln of 2024/B bonds for 2017/A bonds after receiving bids for HUF 21.1 bln. Average auction yield was 3.49%.

Demand fell from the previous exchange auction on February 25 when ÁKK sold a combined HUF 79 bln bonds expiring in 2020 and 2023 for 2017/A bonds.

The closest, ten-year secondary market yield, calculated on 2025/B bonds, was 3.49% on Tuesday, up 19 basis points in a day. All secondary market yields on the over-one-year terms rose steeply, by 13-19 bp on Tuesday.

ÁKK calculated 2016/D bonds a payment at a yield of 1.54%. It calculated 2017/A bonds at a yield of 1.64%.

The closest, twelve-month secondary market benchmark yield was 1.64% on Tuesday.

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