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Lack of interest in 15-year term drags ÁKK bond sales down

The Government Debt Management Agency (ÁKK) sold a combined HUF 52.0 billion of bonds at auction on Thursday, HUF 3.0 bln less than planned, due to meager demand for the longest term, a 15-year bond, state news wire MTI reported.

The ÁKK sold HUF 28.0 bln of five-year bonds, raising its offer by HUF 8.0 bln after primary dealers bid for HUF 38.5 bln of the securities. The average yield was 0.94%, 5 basis points over the secondary market benchmark, but 12 bps lower than the yield at the previous auction of the bonds two weeks earlier.

The ÁKK also sold HUF 24.0 bln of ten-year bonds, HUF 4.0 bln more than planned. Bids reached HUF 30.7 bln, and the average yield was 1.92%, 6 bps over the benchmark, but 13 bps under the yield at the auction two weeks earlier.

Finally, the ÁKK offered HUF 15.0 bln of 15-year bonds, but cancelled the sale after bids came to just HUF 5.4 bln.