The Government Debt Management Agency (AKK) sold HUF 50 billion of six-week "liquidity bills" at an auction on Monday, HUF 10 billion more than the original offer. Subscription was more than fourfold, and auction yields fell slightly from the last auction of liquidity bills on February 28.
Primary dealers submitted bids for HUF 169.5 billion of the discount T-bills which expire on May 25. Demand exceeded already high demand at the previous two auctions held on February 21 and 28, where subscriptions were around HUF 150 billion, nearly double of earlier levels. AKK raised its sales from the original offer by HUF 10 billion to HUF 60 billion at both auctions.
Average yield at the auction was 5.96%, down 4bp from the yield at the end-of-February auction, and 9bp over the closest three-month secondary market benchmark, calculated for bills expiring on July 27.
Accepted yields ranged between 5.93% and 5.97% as the range slipped lower from between 5.97% and 6.00% on February 28.
AKK invites liquidity bill auctions on a case by case basis, depending on the budget's liquidity needs. The auction was the sixth liquidity bill auction since the start of this year.