Yields jump at twelve-month T-bill auction
Yields rose sharply and the Government Debt Management Agency (AKK) cut its offer at an auction of twelve-month discount T-bills on Thursday.
AKK cuts its original offer by HUF 10bn to HUF 35bn after primary dealers submitted bids for just HUF 41.6bn.
Average yield at the auction was 9.96, 116bp over the secondary market benchmark and 205bp higher than the yield at the previous auction of the bills two weeks earlier. Yields were in a very wide range of 9.00% to 10.50%.
In a statement posted on its website after the auction, AKK said there was "broad demand" at the auction, considering the 53 bids, but it lowered the offer because of high yields which reflect the market's uncertainty over the past few days.
AKK said it considered it important to continue to regularly hold scheduled issues of debt, but at the same time to be flexible with regard to announced offers and accepted bids depending on investor demand.
ADVERTISEMENT
Gross Average Earnings at HUF 528,800 in January
Hungarian Lawmakers Ratify Finland's NATO Accession
Cordia Blackswan Finishes HQ Renovation in Birmingham
HIPA Awards 'Investors of the Year'
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.
