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ÁKK raises offer for five-year term at bond auction

The Government Debt Management Agency (ÁKK) raised its offer for the five-year term at a bond auction on Thursday. ÁKK sold HUF 20 billion of the 2018/A bonds, raising its original offer by HUF 5 billion after primary dealers bid to buy HUF 44.7 billion.

Average yield at the auction was 5.99%, level with the secondary market benchmark, but 9bp over the yield at the previous auction of the bonds two weeks earlier. Yields ranged between 5.93% and 6.02%. Sales of the three- and ten-year bonds were in line with the respective offers. Offers for the three-year bonds came to HUF 43.5 billion. Average yield was 5.46%, 4bp under the benchmark and 15bp lower than the yield at the previous auction two weeks earlier. Yields ranged between 5.42% and 5.49%. ÁKK sold HUF 10 billion of the ten-year papers. Offers came to HUF 18.0 billion. Average yield was 6.44%, 2bp under the benchmark, but 18bp over the yield at the previous auction. yields ranged between 6.40% and 6.49%. At a non-competitive tender after the auction, dealers purchased a further HUF 3.3 billion of the three-year bond and HUF 1.1 billion of the five-year bond.