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ÁKK bond buyback far exceeds plan

The Government Debt Management Agency (ÁKK) bought back a combined HUF 88.17 billion of bonds expiring in 2020 and 2021 before maturity at a reverse auction on Wednesday, state news wire MTI reported. 

The ÁKK bought back HUF 1.67 bln of 2020/A bonds, which mature on November 12, 2020, accepting all the bids. The average repurchase yield was 0.01%.

The ÁKK also bought back HUF 86.50 bln of 2021/C bonds maturing on April 21, 2021, also accepting all the bids. The average repurchase yield was 0.04%.

The ÁKK had also planned to buy back 2021/B bonds, but cancelled the buyback as no bids were submitted.

The repurchase yields compare to a three-month secondary market benchmark of 0.04% and a 12-month benchmark of 0.05%. The ÁKK had planned to buy back HUF 5 bln of all three papers.