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ÁKK switch auction bond sales fall short of plan

The Government Debt Management Agency (ÁKK) sold HUF 31.0 billion of bonds maturing in 2026 and 2028 at a switch auction on Wednesday, accepting bonds expiring in 2021 as payment, state news wire MTI reported. 

The ÁKK sold HUF 20.0 bln of 2026/D bonds for 2021/C bonds, matching the original offer, after demand from primary dealers came to HUF 40.6 bln for the exchange. The 2026/D bonds sold at an average yield of 1.89%.

The ÁKK also sold HUF 11.0 bln of 2028/A bonds for 2021/B bonds. Bids reached HUF 14.1 bln, well under the HUF 20.0 bln offer. The 2028/A bonds sold at an average yield of 2.13%.

The yield on the five-year benchmark 2024/C bond was 1.40% on Wednesday. The yield on the ten-year benchmark 2030/A bond was 2.29%.