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ÁKK bond buyback exceeds plan

The Government Debt Management Agency (ÁKK) bought back a combined HUF 22.28 billion of bonds expiring in 2019 or 2020 before maturity at a reverse auction on Wednesday, state news agency MTI reported.

The ÁKK bought back HUF 1.58 bln of 2019/C bonds, which mature on October 10, 2019. Bids reached HUF 2.64 bln. The average repurchase yield was 0.05%.

The ÁKK also bought back HUF 20.70 bln of 2020/B bonds, maturing on June 24, 2020. Bids reached HUF 31.11 bln, and the average repurchase yield was 0.12%.

The repurchase yields compare to a six-month secondary market benchmark of 0.10% and a 12-month benchmark of 0.20%. The ÁKK had planned to buy back HUF 5 bln of both papers.