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%.