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Hungary to auction new 3- and ten-year fixed-rate bonds with old 5-year series next Thursday

The Government Debt Management Agency (AKK) will offer a new three-year bond series and a new ten-year bond together with the reoffering of the usual 5-year series at its next regular fixed-rate bond auction on January 13, the auction invitation published on AKK's website revealed.

The auction offer – of HUF 20 billion three-year bonds, HUF 15 billion of five-year bonds and HUF 10 billion of ten-year bonds – is unchanged from recent auctions.

The three-year 2014/C bond, to be offered for the first time next Thursday, carries a 6.75% annual coupon and will expire on August 22, 2014. It replaces the 2014/ bond which expires six months earlier on January 12, 2014, and has a lower coupon of 5.5%.

The new ten-year series is the 2022/A bond, which expires on June 24, 2022, and has a 7% annual coupon. It has most almost two years more to maturity and a 0.5 percentage points lower coupon than the outgoing 2020/A bond.

The third series on offer at next Thursday's auction remained the 2016/C bond, expiring on February 12, 2016 and carrying a 5.5% annual coupon.

The new series will replace the two old ones as benchmark bonds on which the three- and ten-year secondary market benchmark yields are calculated at the next change of the reference bonds due on February 2. (MTI Econews)