The Government Debt Management Agency (AKK) repurchased two bonds maturing in 2011 worth a combined HUF 5.3 billion before maturity at a reverse auction on Wednesday.
The auction followed one of the rare unsuccessful buyback auctions on December 1 when AKK refused all the combined HUF 14.3 billion early resale offers. Interest in resale ahead of maturity focused as before on the 2011/B bond, which matures on October 12, 2011.
AKK repurchased HUF 751 million 2011/C bonds at the auction, accepting almost all of the HUF 814 million nominal value papers primary dealers offered. The bonds mature on April 22, 2011. Average yield was 6.06%, well up from 5.57% at the last successful repurchase of the bonds on November 17, and 38bp over the closest, three-month secondary market benchmark calculated on bills which matures on April 6, 2011.
AKK accepted less than half or HUF 4.5 billion of HUF 9.4 billion in offers for the 2011/B bonds. Average repurchase yield was 6.15% as against 5.82% at the November 17 reverse auction and 5bp over the Tuesday yield of the twelve-month secondary market benchmark, which matures on November 16, 2011.
The reverse auction will leave HUF 326 billion 2011/B bonds and HUF 422 billion 2011/C bonds outstanding on the market by the December 22 settlement day, Econews calculated based on AKK data.
Including the current auction, AKK has bought back a total of HUF 246 billion bonds ahead of maturity at reverse auctions so far this year. (MTI-Econews)