The Government Debt Management Agency (AKK) sold HUF 60 billion of three-month discount T-bills at an auction on Tuesday, raising its sales as oversubscription remained high. Despite continued strong demand, yields rose now for the third auction in a row.
Good subscription at the three-month auction followed weak demand at last Thursday's twelve-month discount T-bill auction where AKK reduced the sales to temper a sharp rise in yields.
AKK sold HUF 60 billion of the three-month bills on Tuesday, HUF 10 billion more than announced after receiving bids for HUF 129.5 billion. AKK raised its sales by HUF 10 billion at the previous auction held on August 31 too after demand for the same offer jumped to HUF 163 billion. Tuesday's demand just a touch below the above-HUF 130 billion levels of the preceding three auctions held between August 10 and August 24.
Average yield was 5.53%, up 6bp from the average yield at the previous auction of the bills one week earlier, and 3bp above the yield of the secondary market benchmark, calculated on the same series maturing on December 15. Accepted yields ranged between 5.45% and 5.57% as the range moved higher from between between 5.43% and 5.50% a week earlier.
Oversubscription at the weekly auctions has been high, at well above HUF 100 billion, since late July, and AKK raised its offer from HUF 45 billion to HUF 50 billion for the August 10 auction. (MTI-Econews)