Lack of interest in 15-year term drags ÁKK bond sales down

Debt

pixabay

The Government Debt Management Agency (ÁKK) sold a combined HUF 52.0 billion of bonds at auction on Thursday, HUF 3.0 bln less than planned, due to meager demand for the longest term, a 15-year bond, state news wire MTI reported.

The ÁKK sold HUF 28.0 bln of five-year bonds, raising its offer by HUF 8.0 bln after primary dealers bid for HUF 38.5 bln of the securities. The average yield was 0.94%, 5 basis points over the secondary market benchmark, but 12 bps lower than the yield at the previous auction of the bonds two weeks earlier.

The ÁKK also sold HUF 24.0 bln of ten-year bonds, HUF 4.0 bln more than planned. Bids reached HUF 30.7 bln, and the average yield was 1.92%, 6 bps over the benchmark, but 13 bps under the yield at the auction two weeks earlier.

Finally, the ÁKK offered HUF 15.0 bln of 15-year bonds, but cancelled the sale after bids came to just HUF 5.4 bln.

ADVERTISEMENT

Varga puts 2021 GDP growth at 7-7.5% Analysis

Varga puts 2021 GDP growth at 7-7.5%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New managing director at the helm of Wolt Hungary Appointments

New managing director at the helm of Wolt Hungary

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

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.