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ÁKK switch auction bond sales fall short of plan

The Government Debt Management Agency (ÁKK) sold HUF 20.5 billion of bonds maturing in 2026 and 2031 at a switch auction on Wednesday, accepting bonds expiring in 2021 and 2022 as payment, state news wire MTI reported.   

The ÁKK sold HUF 11.5 bln of 2026/D bonds for 2021/B bonds, below its original offer of HUF 20 bln. Demand from primary dealers came to HUF 14.25 bln for the exchange.

The 2026/D bonds sold at an average yield of 1.38%. The average yield of the 2021/B bonds was minus 0.03%.

The ÁKK also sold HUF 9.0 bln of 2031/A bonds for 2022/A bonds, below its original offer of HUF 20 bln. Bids reached HUF 16.73 bln.

The 2031/A bonds sold at an average yield of 2.07%. The average yield of the 2022/A bonds was 0.24%.

Of the closest secondary market benchmarks, the three-year benchmark calculated on 2022/C bonds was 0.40%, the five-year benchmark calculated on 2024/C bonds was 0.96%, and the ten-year benchmark calculated on 2030/A bonds was 1.86%.