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ÁKK sells HUF 90 bln of bonds at auction, well over plan

The Government Debt Management Agency (ÁKK) sold a combined HUF 90 billion of bonds at auction on Thursday, raising its original offer by HUF 30 bln on strong demand from primary dealers, state news wire MTI reported.

The ÁKK had offered HUF 20 bln of three, five and ten-year bonds at the auction, but raised its offer for each of the terms by HUF 10 bln to sell EUR 30.0 bln of each.

Dealersʼ bids for the three-year bonds came to HUF 98.0 bln. The average yield was 0.35%, 2 basis points under the secondary market benchmark and 5 bps lower than the yield at the previous auction of the bonds two weeks earlier. 

Bids for the five-year bonds reached HUF 71.3 bln, with an average yield of 1.15%, 23 bps over the secondary market benchmark, which matures more than one year earlier, and 18 bps higher than the yield at the previous auction, when the five-year bond offered was the secondary market benchmark.

Bids for the ten-year bonds amounted to HUF 66.9 bln. The average yield was 1.93%, 3 bps under both the benchmark and the yield at the auction two weeks earlier.