Demand high at bond auction, sales exceed plan

Debt

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The Government Debt Management Agency (ÁKK) sold a combined HUF 45 billion of securities at auction on Thursday, raising its original offer by HUF 5 bln on strong demand for five-year floating-rate bonds. Including non-competitive sales at a tender following the auction, Thursdayʼs sales came to HUF 49.2 bln.   

The ÁKK sold HUF 33 bln of discount twelve-month T-bills, HUF 3 bln more than the original offer. Primary dealers bid for HUF 61.2 bln of the papers expiring on December 27, 2018.  The average yield was minus 0.01%, 2 basis points under the secondary market benchmark calculated on the same bill series and 5 bps under the yield at the previous auction of the bills two weeks earlier.

The average twelve-month auction yield dropped below zero for the first time since the middle of October.

The ÁKK also sold HUF 12 bln of five-year floaters on offer, HUF 2 bln over the plan. Bids came to HUF 31.2 bln for the papers expiring on July 26, 2023. 

The ÁKK sold an additional HUF 4.2 bln of floaters at a non-competitive tender after the auction, where the average price was 98.32%. 

The ÁKK auctioned floating-rate bonds for the first time since the end of November.

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