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ÁKK sells HUF 53.5 bln of bonds, over plan

The Government Debt Management Agency (ÁKK) sold a combined HUF 53.5 billion of bonds at auction on Thursday, raising its original offer by HUF 13.5 bln on strong demand for the two shorter terms, state news wire MTI reported.

The average three and five-year auction yields rose, while the 15-year yield dropped compared to the previous auction. The two shorter bonds were last auctioned two weeks earlier, while the 15-year bond was last sold on August 17. The auction yields were below the latest secondary market benchmarks.

The ÁKK sold HUF 21 bln of three-year bonds, raising its original offer by HUF 6 bln after almost fourfold demand. The average yield was 0.51%, 5 bps under the secondary market benchmark but 2 bps higher than the yield at the previous auction of the bonds two weeks earlier.

The ÁKK sold HUF 22.5 bln of five-year bonds, raising its offer by HUF 7.5 bln after bids reached HUF 51 bln. The average yield was 1.22%, 4 bps below the benchmark but 2 bps higher than the yield two weeks earlier.

The ÁKK also sold HUF 10 bln of 15-year bonds, as planned. Bids came to HUF 18.1 bln. The average yield was 3.28%, 3 bps under the benchmark, and 38 bps under the average yield at the previous auction of 15-year bonds held on August 17.

In addition, the ÁKK sold a further HUF 4.9 bln of three-year bonds, HUF 3 bln of five-year bonds and HUF 2.2 bln of 15-year bonds at a non-competitive tender following the auction.