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ÁKK reverse auction bond buybacks far exceed plan

The Government Debt Management Agency (ÁKK) bought back a combined HUF 42.17 billion of bonds expiring in 2020 before maturity at a reverse auction on Wednesday, state news wire MTI reported.

The ÁKK bought back HUF 9.69 bln of 2020/A bonds, which mature on November 12, 2020. Bids came to HUF 13.4 bln, and the average repurchase yield was 0.08%.

The ÁKK also bought back HUF 32.48 bln of 2020/C bonds maturing on September 23, 2020. Bids reached HUF 35.23 bln. The average repurchase yield was 0.04%.

The repurchase yields compare to a three-month secondary market benchmark of 0.05% and a 12-month benchmark of 0.05%.

The ÁKK had planned to buy back HUF 5 bln of both papers.