Investors clamored to purchase Hungarian debt as the country experienced heavy demand at its biweekly Thursday bond auction, resulting in more being sold than originally planned, reports Portfolio.hu. A HUF 50 million lot of bonds netted bids worth a total of HUF 99 million, prompting a net total of an extra HUF 2.5 billion to be issued.
At the same time, yields dropped considerably compared to the previous auction a fortnight ago, with a fall of 41-67 base points on today's bonds.
The most successful sell-off was for the tranche of 3-year bonds, which attracted HUF 57.7 billion on a lot valued at HUF 15 billion, with an average yield of 6.23%. However, a HUF 15 billion lot of 10-year bonds only resulted in HUF 14 billion of bids at an average yield of 7.28%, causing the issuer to withdraw HUF 5 billion of the lot.