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Hungary gov’t debt manager plans net forint issues of HUF 179 bln in June-August

Hungary's government debt management agency ÁKK plans net forint issues of HUF 179 billion in May-July, with all net issuance in bonds and repayments in discount T-bills, according to ÁKK's three-month forint issue plan.

Bond auction offers will probably drop from recent levels while discount T-bill offers remain unchanged. ÁKK plans to hold seven reverse auctions in June-August and will also hold three bond exchange auctions.

Gross issues will come to HUF 1,362 billion and repayments to HUF 1,182 billion during the period.

ÁKK had planned net issues of HUF 269 billion for May-July, also all of them in bonds.

Net bond auction sales will total HUF 339 billion, with just one small bond expiry of HUF 835 million of 2016/A bonds on June 30. With HUF 70 billion bonds planned to be repurchased early through seven reverse auctions, and HUF 30 billion bonds switched to longer bonds at exchange auctions, net bond issues would total HUF 189 billion in the period.

The longest, 15-year fixed-rate bond is scheduled to be auctioned twice, on June 30 and on August 25, during the period. The 2015/B floating-rate bonds will be offered three times, on May 26, July 7 and on August 4. ÁKK has auctioned floating-rate bonds once a month, together with twelve-month bills, since last October.

The HUF 650 billion offer of three-month discount T-bills falls HUF 50 billion short of expiries during the period and translates to an unchanged HUF 50 billion at the weekly auctions. The period will see two big twelve-month discount T-bill expiries, one of HUF 175 billion of the bills on June 1, and the other of HUF 185 billion on July 27.

ÁKK plans net HUF 60 billion of repayments on twelve-month bills, with sales of a combined HUF 300 billion at the bi-weekly auctions, that is, keeping the auction offer at the current HUF 50 billion.

ÁKK plans to sell HUF 21.4 billion of twelve-month interest-bearing T-bills during the period. As usual, the sales target for the bills, designed for retail investors, matches the expiring volume.