The Government Debt Management Agency (ÁKK) repurchased bonds maturing in 2011 worth a combined HUF 1.4 billion before maturity at its first reverse auction this year held on Wednesday.
Demand was light and ÁKK refused all bids for the early redemption of bonds expiring in April. Interest in resale ahead of maturity focused as before on the the 2011/B bond, which matures on October 12, 2011.
ÁKK refused all the HUF 1.2 billion bids it received for the early resale of 2011/C bonds which mature on April 22, 2011 and carry a 6.75% annual coupon. At the previous reverse auction held on December 29 ÁKK received HUF 1.6 billion bids and repurchased HUF 1.4 billion of the bonds at an average yield of 6.06%.
ÁKK accepted just HUF 1.4 billion of HUF 5.1bn bids received for the 2011/B bonds, which pay 6% interest annually. ÁKK refused all the HUF 8.11billion bids which arrived at the previous auction on December 29. The average as well as the minimum repurchase yield was 6.00% as against 6.15% at the last successful reverse auction of the bonds on December 15. Tuesday yield of the twelve-month secondary market benchmark, which matures on November 16, 2011, was 6.10%.
The reverse auction will leave HUF 315 billion 2011/B bonds and HUF 416 billion 2011/C bonds outstanding on the market by the January 19 settlement day, Econews calculated based on ÁKK data.
ÁKK has bought back about HUF 247 billion bonds ahead of maturity at reverse auction last year. (MTI Econews)