Demand strong for shorter terms at bond auction; AKK cuts offer for Y15

Debt

Demand was strong for the shorter terms at a bond auction on Thursday, but the Government Debt Management Agency (AKK) cut its offer of the 15-year bond on low offers.

AKK sold HUF 15bn of three-year bonds, in line with the original offer. Primary dealers submitted bids for HUF 30.6bn.

Average yield was 8.31%, 9bp under the secondary market benchmark and 13bp lower than the yield at the previous auction of the bonds two weeks earlier. Yields ranged between 8.16% and 8.35%.

AKK sold HUF 18bn of five-year bonds, raising the original offer by HUF 6bn after bids came to HUF 56.2bn.

Average yield was 8.72%, 8bp under the benchmark but 2bp over the yield at the previous auction, also two weeks earlier. Yields ranged between 8.68% and 8.72%.

AKK cut its offer for the 15-year bonds by HUF 3.5bn, selling HUF 4.5bn of the bonds after dealers bid for just HUF 7.8bn.

Average yield at the auction was 8.93%, 1bp over the benchmark and 101bp higher than the yield at the previous auction of the bonds on October 20. Yields ranged between 8.85% and 8.96%.

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