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Hungary to sell Ft 65 billion of bonds at December 8 Auction

Hungary plans to sell Ft 50 billion ($233 million) of bonds maturing August 2008 and Ft 15 billion of bonds due November 2020 at an auction this week. The government's Debt Management Agency will auction the three-year bonds with an annual coupon of 6.5% and the 15-year bonds with 7.5% annual interest on Dec. 8, the agency said on its Web site. The Budapest-based agency last sold the three-year bonds at an average yield of 6.94 % at an auction on Nov. 10, and the 15-year bonds at an average yield of 6.36 % on Oct. 13. The benchmark three-year bond yielded 6.64 % as of 10:09 a.m. on the secondary market, while the yield on the benchmark 15-year bond was 6.52 %. Hungary's local-currency long-term debt rating is A1 at Moody's Investors Service, four steps below the highest investment grade, and A- at Standard & Poor's, six levels from the top. The agency sells forint-denominated government bonds every second Thursday in Budapest.