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Demand drops, yields inch down at three-month T-bill auction

Oversubscription dropped and the Government Debt Management Agency (AKK) sold the announced amount of discount three-month T-bills at an auction on Tuesday. Yields dropped slightly.

AKK sold HUF 50 billion of the bills expiring on June 6, the announced amount. Primary dealers submitted bids for HUF 80.8 billion. 

Demand for the three-month papers fell from HUF 107.8 billion at the previous auction one week earlier and from well above HUF 100 billion at the preceding three of the weekly auctions. On February 21 AKK raised its sales by HUF 10 billion to HUF 60 billion.

Average yield at the auction was 7.22%, 1bp under the secondary market benchmark (which matures three weeks after the auctioned bill), and 2bp under the yield at the previous auction of the bills one week earlier. Yields ranged between 7.14% and 7.27%, the range hardly changed from 7.15% and 7.27% one week earlier.