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ÁKK raises sales on good demand at 3-month T-bill auction

Hungary’s government debt management agency ÁKK sold HUF 50 billion of three-month discount T-bills, HUF 5 billion more than the announced volume at an auction.

Demand stayed well above HUF 100 billion although somewhat dropped from a week earlier. Yields fell only slightly from the previous auction on July 27, but were 12bp down from Monday's respective secondary market benchmark.

Subscriptions totaled HUF 118.1 billion in 119 bids, down. Demand fell from a high HUF 133.3 billion in 131 bids for the same HUF 45 billion offer on July 27, when ÁKK raised the auction sales to HUF 50 billion.

Average yield was 5.43%, 12bp below the three-month secondary market benchmark yield on Monday, and a slight 3bp below the average at the previous auction. Yields in the 50 accepted bids moved between 5.28% and 5.44%. The yield range moved lower from between 5.35% and 5.50% at the previous auction.

Three-month discount T-bill auction yields fell from 5.91% at this year's first auction on January 5 to 4.80% on April 27, then rose to hover close to 5.30% between early June and the middle of July. Auction yields rose again, to 5.47% and 5.46% at the last two July auctions after an IMF delegation left without completing a regular review of Hungary's 2008 autumn standby loan.

The secondary market three-month yield, calculated on a bill series maturing on December 15, was unchanged from last Tuesday at to 5.55% on Monday. The three-month benchmark yield was flat at 5.25% between June 8 and June 23 and has risen since.

The three-month discount T-bill auctioned on Tuesday is a new series maturing on November 10. (MTI – Econews)