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AKK sells announced HUF 40 billion of three-month T-bills, demand drops

Hungary's Government Debt Management Agency (AKK) sold HUF 40 billion of three-month discount T-bills, the announced volume at an auction on Tuesday. Demand dropped further and auction yields rose slightly further from a week earlier.

Demand for the bills totaled HUF 76 billion, down from HUF 96.5 billion at the previous auction on November 16. Last week auction demand for the three-month bills dropped below HUF 100 billion for the first time since the middle of the summer.

Average yield at the auction was 5.28%, up 2bp from the previous three-month T-bill auction a week earlier but still 4bp under the secondary market benchmark. The benchmark bill matures on April 6, 2011, while the T-bill offered at auction on Tuesday matures on March 2, 2011.

After inching down to 5.24% in the first part of November, the average three-month auction yield rose back to its level at the start of October.

Yields ranged between 5.25% and 5.30%, up from a range of 5.24% and 5.28% at the previous auction. (MTI-Econews)