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ÁKK switch auction bond sales fall short of plan

The Government Debt Management Agency (ÁKK) sold HUF 37.50 billion of bonds maturing in 2026 and 2028, accepting bonds expiring in 2020 as payment, at a switch auction on Wednesday, state news wire MTI reported.   

The ÁKK sold HUF 18.0 bln of 2026/D bonds for 2020/B bonds, below its original offer of HUF 20 bln. Demand from primary dealers came to HUF 32.54 bln for the exchange. The 2026/D bonds sold at an average yield of 2.84%, while the average yield of the 2020/B bonds was 0.53%.

The ÁKK also sold HUF 19.50 bln of 2028/A bonds for 2020/C bonds, likewise below its original offer of HUF 20 bln. Bids reached HUF 39.31 bln. The 2028/A bonds sold at an average yield of 3.02%. The average yield of the 2020/C bonds was 0.54%.

Of the closest secondary market benchmarks, the yield was 1.23% for three-year benchmark 2021/C bonds, 2.37% for five-year 2024/C bonds, and 2.96% for ten-year 2027/A bonds.