The Government Debt Management Agency (AKK) repurchased HUF 2.3 billion of 2011/B bonds before maturity at a reverse auction on Wednesday.
Demand was high but AKK refused the bulk of the offers to sell early. The average repurchase yield rose slightly over the previous reverse auction of the same bonds on March 9 but was below the closest six-month benchmark.
Primary dealers offered HUF 20.4 billion of the bonds which mature on October 12, 2011. Offers were up from HUF 6.3 billion at the March 9 auction and were the highest since the middle of November.
Average yield was 5.85%, two basis points above the average of the March 9 auction and 2bp under the secondary market six-month benchmark, calculated on a bill expiring on September 21.