Demand revives, yields drop at three-month T-bill auction
Oversubscription for a reduced volume on offer was almost fivefold and the average yield dropped at an auction of discount three-month T-bills by the Government Debt Management Agency (ÁKK) on Tuesday.
Yields dropped after rises at the previous two auctions although they still varied in a wide range.
ÁKK sold HUF 30bn of the bills due on January 11, 2012, the announced amount, despite almost five-fold oversubscription. The debt manager reduced the announced volume from HUF 50bn at the previous auction on September 20 and from an unusually high HUF 60bn two weeks earlier, offering three-month bills expiring in 2012 for the first time.
Primary dealers submitted offers for HUF 145.2bn as against HUF 101.8bn at the previous auction.
Average yield at the auction was 5.91%, 4bp under the secondary market benchmark and 3bp lower than the yield at the previous auction of the bills one week earlier. Yields ranged between 5.78% and 5.95%.
ADVERTISEMENT
Banking Assoc Delivers Negative Assessment of Gov't Measures
Parl't Approves Amendments to Legislation on Judiciary
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.
