The Government Debt Management Agency (AKK) repurchased HUF 1.2 billion of bonds before their maturity in 2012 at a reverse auction on Wednesday; combined offers dropped to HUF 1.3 billion from HUF 25.2 billion at the previous early buyback on August 24 of which AKK accepted just HUF 2.6 billion.
AKK refused the HUF 69 million offers it received from primary dealers for the early redemption of 2012/B bonds which mature on June 12, 2012. Offers dropped sharply from HUF 11.5 billion two weeks earlier when AKK bought back just HUF 650 million of the bonds at an average repurchase yield of 5.77%.
AKK bought back HUF 1.2 billion of 2012/C bonds which mature on October 24, 2012. Dealers offered HUF 1.3 billion of the bonds, again sharply down from the HUF 13.7 billion offers on August 24 of which it accepted HUF 1.9 billion.
The average auction yield of the 2012/C bonds was 5.87%, again down from 6.10% two weeks earlier.
The twelve-month secondary market benchmark yield was 5.63% on Wednesday, down from 5.86% on August 24.
The auction was the 14th reverse auction held this year, and raised the volume bought back at this year's reverse auctions to HUF 134 billion, Econews calculated.