The Government Debt Management Agency (ÁKK) bought back HUF 2.6 billion of bonds before their maturity in 2012 at a reverse auction on Wednesday, refusing the bulk of the HUF 25.2 billion offers it received, suggesting that the yields in the offers were too low.
The ÁKK accepted HUF 650 million of HUF 11.5 billion offers it received from primary dealers for the early redemption of 2012/B bonds which mature on June 12, 2012. Offers were somewhat lower than the HUF 14.3 billion at the previous early buyback auction held on August 10 when the ÁKK bought back HUF 7.3 billion of the series.
Average repurchase yield of the 2012/B bonds at the auction was 5.77%, well down from 6.01% on August 10.
The ÁKK bought back HUF 1.9 billion of 2012/C bonds which mature on October 24, 2012. Dealers offered HUF 13.7 billion of the bonds. On August 10 the debt manager received HUF 12.6 billion offers of which it accepted HUF 5.6 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 5.72% on Tuesday, also fell from 6.13% on August 10.
The auction was the 13th reverse auction held this year, and raised the volume bought back at this year's reverse auctions to HUF 133 billion, according to an estimate by Econews.