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ÁKK bond sales comfortably exceed plan

The Government Debt Management Agency (ÁKK) sold a combined HUF 83.5 billion of bonds at auction on Thursday, a combined HUF 18.5 bln more than planned, due to strong demand for the longer terms, state news wire MTI reported.

The ÁKK sold HUF 20 bln of three-year bonds, as planned, after primary dealers bid for HUF 32 bln of the securities. The average yield was 1.62%, up 16 basis points from the yield on the same bond at the previous auction two weeks earlier. (The yield on the three-year secondary market benchmark, which matures more than one year earlier, was 1.0% on Wednesday.)

The ÁKK also sold HUF 33.5 bln of five-year bonds, raising its original offer by HUF 8.5 bln after bids reached HUF 58.5 bln. The average yield was 2.27%, 1 bp over the secondary market benchmark and 6 bps over the yield at the previous auction of the bonds two weeks earlier.

Finally, the ÁKK sold HUF 30 bln of ten-year bonds, HUF 10 bln over plan. Bids came to HUF 55.4 bln, and the average yield was 3.25%, 2 bps over the secondary market benchmark, and 9 bps higher than the yield when the same bond was sold at auction two weeks earlier.