The Government Debt Management Agency (AKK) sold the announced HUF 50 billion of an auction of three fixed-rate bonds on Thursday. Demand was more than two-fold for all three bonds, but still fell from two weeks earlier, and yields rose both compared to the previous auction and compared to Wednesday's secondary market yields.
Combined subscriptions totaled HUF 130.8 billion, down from HUF 169 billion at the previous auction of the same bonds on January 27. At that auction AKK sold HUF 62.5 billion bonds against a HUF 45 billion offer and sold an additional HUF 24 billion at a non-competitive tender following the auction.
All three bonds were more than two-fold oversubscribed. Yields rose more on the longer bonds.
AKK sold the announced HUF 20 billion of the 2014/D three-year bonds at the auction, after primary dealers bid for HUF 59.7 billion. Demand rose slightly from HUF 57.7 billion at the January 27 auction. The average three-year auction yield came to 6.96%, 11bp over the secondary market benchmark and 6bp over the yield at the previous auction of the bonds two weeks earlier.
AKK sold HUF 15 billion of the 2016/C five-year bonds, the original offer. Primary dealers bid for HUF 35.6 billion after an extraordinarily high HUF 84.3 billion two weeks earlier. The average yield was 7.22%, 10p over the secondary market benchmark and 15bp higher than the yield at the previous auction.
AKK sold the announced HUF 15 billion of the ten-year bonds at the auction. Dealers bid for HUF 35.5 billion, up from HUF 27 billion of the bonds at the previous tender. The average yield was 7.25%, 11bp up from Wednesday's secondary market benchmark and 26bp up from the yield at the previous auction.
AKK raised its combined offer of the three bonds to HUF 50 billion for the current auction, returning to the volumes offered up to the end of last October. The debt manager offered HUF 45 billion bonds between the beginning of November and the end of January. (Econews)