The Government Debt Management Agency (ÁKK) exchanged bonds maturing in 2020 for HUF 40.0 billion of bonds maturing in 2025 and 2026 at a switch auction on Wednesday, state news wire MTI reported.
Primary dealers bid for HUF 56.0 bln of 2025/B bonds, of which the debt manager exchanged the originally offered HUF 20 bln for 2020/B bonds.
The ÁKK also sold HUF 20 bln of 2026/D bonds, the planned volume, in exchange for 2020/B bonds at the switch auction, after receiving HUF 34.1 bln worth of bids.
The 2025/B bonds were sold at an average yield of 1.57%, and the 2026/D bonds at an average yield of 1.89% in the exchange.
The ÁKK accepted 2020/B bonds which expire on June 24, 2020, at a price corresponding to a yield of 0.28% in both exchanges. The average yields compare to a 10-year secondary market benchmark yield, calculated on 2027/A bonds, of 1.93%.
The auction was the first switch auction held by the ÁKK since September 2017.