Gross issues will come to HUF 1,178 billion and gross repayments to HUF 1,353 billion during the period.

Bond issues will total HUF 355 billion in the three months according to the issue plan, and there will be just one big bond expiry, of HUF 282 billion in 2011/B bonds on October 12. Gross expiries will total HUF 373 billion in September-November.

The issues-expires include HUF 40 billion bonds which are planned to be switched into longer-term ones at four exchange auctions in September-November, and early bond repurchases of HUF 50 billion at the five reverse auctions planned to take place in September and November.

Besides six biweekly bond auctions, AKK will also offer floating-rate bonds parallel with every second 12-month discount T-bill auction on September 1, September 29 and October 27.

The longest, 15-year fixed-rate bond is scheduled to be auctioned twice, on August 25 and on October 20 during the period.

At the standard bi-weekly auctions, AKK cut back it combined offer of 3-, 5- and 10-year bonds from HUF 45 billion to HUF 37.5 billion at the last auction on August 11, but raised its offer to HUF 50 billion for the next auction due on August 25, Thursday. AKK sold HUF 57 billion of the bonds at the August 11 auction, and sold an additional HUF 9.3 billion bonds at the non-competitive tender following the auction.

AKK raised its offer of the floating-rate bonds from HUF 5 billion to HUF 7 billion at their last auction on August 4, and kept its offer of 15-year bonds unchanged at HUF 10 billion. AKK announced last week that it will offer the 15-year bonds at the next bond auction on September 8 rather than on August 25, changing the schedule based on information from primary dealers.

The HUF 520 billion offer of three-month discount T-bills will be below the HUF 587 billion expiries during the period and indicates no change in the per auction offers after a cut to HUF 40 billion at the end of July from HUF 50 billion offered since the end of February.

AKK will probably cut the offer at the biweekly twelve-month discount T-bill auctions as it plans to sell a combined HUF 280 billion of the bills at the seven auctions in the period. This translates to an average of HUF 40 billion bills, below the HUF 50 billion offered regularly so far this year. There will be just two big twelve-month discount T-bill expiries, of HUF 210 billion bills on September 21 and of HUF 160 billion on November 16, in September-November.

The tentative target for twelve-month interest-bearing T-bill sales is HUF 23 billion during the period. As usual, the sales target of these bills, designed for retail investors, matches the expiring volume.