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AKK ups sales, yields rise at three-month T-bill auction

The Government Debt Management Agency (AKK) raised its sales by HUF 5 billion from the original offer in close to three-fold oversubscription at an auction of three-month discount T-bills by on Tuesday. Yields rose sharply after Monday's 25bp central bank rate rise.

AKK sold HUF 50 billion of the bills, as against the announced HUF 45 billion. AKK raised the pre-announced volume from HUF 40 billion it offered at the weekly auctions from late September to January 11.

Primary dealers submitted bids for HUF 125.8 billion. Demand fell from HUF 154.3 billion  billion at the previous three-month bill auction held one week earlier when AKK sold HUF 55 billion of the bills instead of the announced HUF 45 billion.

Average yield at the auction was 5.93%, 23bp over Monday's secondary market benchmark calculated before the announcement of the rate rise and set on a bill expiring on June 1, four weeks later than the bill sold at the auction. The average rose 30bp from the previous auction of the bills one week earlier.

Accepted yields ranged between 5.73% and 5.97% as against between 5.65% and 5.68% at the previous auction. (MTI-Econews)