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ÁKK sells HUF 40 bln of bonds at switch auction, as planned

The Government Debt Management Agency (ÁKK) sold HUF 40 billion of bonds maturing in 2026, accepting bonds expiring in 2020 as payment, at a switch auction on Wednesday.   

The ÁKK sold HUF 20 bln of 2026/D bonds for 2020/A bonds, and a further HUF 20 bln for 2020/C bonds. This was in line with its offer to sell HUF 20 bln of the 2026/D bonds at each auction.

Demand from primary dealers came to HUF 43.30 bln for the exchange with the 2020/A bonds, and to HUF 35.59 bln for the 2020/C bond exchange.

The 2020/A bonds sold at an average yield of 1.54%, and the 2020/C bonds at an average yield of 1.51%. The average yield of the 2026/D bonds was 3.26%.

Of the closest secondary market benchmarks, the three-year benchmark calculated on 2021/C bonds was 1.89%, while the ten-year benchmark calculated on 2027/A bonds was 3.43%.