ÁKK sells HUF 35 bln of six-week T-bills, above plan
The Government Debt Management Agency (ÁKK) sold HUF 35 billion of discount six-week T-bills at a liquidity auction on Monday, raising its original offer by HUF 5 bln on high demand, state news wire MTI reported.
Primary dealers bid for HUF 89.23 bln of the papers. The average yield was 0.00%, 4 basis points over the three-month secondary market benchmark.
The liquidity discount T-bills are designed to manage the central governmentʼs short-term liquidity needs, and, accordingly, are auctioned on a case-by-case basis.
The bills expire on December 27, after the big year-end tax payment deadlines but before the end of the calendar year, thus providing liquidity without raising year-end government debt.
The ÁKK tends to keep year-end issues low and repayments high to keep the year-end gross state debt ratio on a declining trend, as required by law, noted MTI.
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