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Sales fall short at ÁKK bond switch auction

The Government Debt Management Agency (ÁKK) sold HUF 37.5 billion of bonds maturing in 2026 and 2028, accepting bonds expiring in 2021 as payment, at a switch auction on Wednesday, state news wire MTI reported.

The ÁKK sold HUF 20 bln of 2026/D bonds for 2021/C bonds, in line with its original offer. Demand from primary dealers came to HUF 84.61 bln for the exchange.

The 2026/D bonds sold at an average yield of 1.67%. The 2021/C bonds used as payment were calculated at a yield of 0.25%.

The ÁKK also sold HUF 17.5 bln of 2028/A bonds for 2021/B bonds, below its original offer of HUF 20 bln. Bids reached HUF 20.36 bln.

The 2028/A bonds sold at an average yield of 1.92%. The yield of the 2021/B bonds was 0.31%.

Of the closest secondary market benchmarks, the three-year benchmark calculated on 2022/C bonds was 0.85%, the five-year benchmark calculated on 2024/C bonds was 1.31%, and the ten-year benchmark calculated on 2030/A bonds was 2.24%.