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Demand strongest for longer terms at ÁKK auction

Debt

The Government Debt Management Agency (ÁKK) sold a combined HUF 55.0 billion of bonds at auction on Thursday, in line with the overall plan, as strong bids for the longer terms made up for weak demand for the five-year papers, state news wire MTI reported.

The ÁKK sold HUF 20.0 bln of five-year bonds, cutting its original offer by HUF 5.0 bln after primary dealers bid for just HUF 25.3 bln of the securities. The average yield was 1.32%, 7 basis points over the secondary market benchmark, but 11 bps under the yield at the previous auction of the bonds two weeks earlier.

The ÁKK also sold HUF 20.0 bln of ten-year bonds, HUF 5.0 bln more than planned. Bids reached HUF 75.7 bln, and the average yield was 2.28%, level with the benchmark but 10 bps under the yield at the auction two weeks earlier.

Finally, the ÁKK sold HUF 15.0 bln of 15-year bonds, in line with the original offer, after bids came to HUF 34.4 bln. The average yield was 2.70%, 4 bps over the benchmark, but 94 bps lower than at the previous auction of the bonds on June 6.

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