The Government Debt Management Agency (AKK) repurchased a combined HUF 34.1 billion of bonds before maturity at a reverse auction on Wednesday. Primary dealers offered HUF 141.1 billion of the bonds.
AKK bought back HUF 17.7bn of 2010/D bonds, which mature on August 24, 2010 on Wednesday. Dealers offered HUF 52.5bn of the bonds. Average yield was 10.17%, 12bp over Tuesday’s secondary market twelve-month benchmark.
AKK repurchased HUF 2.1 billion of 2011/B bonds, which mature on October 12, 2011. Offers came to HUF 24.9 billion. Average yield was 10.42%, compared to a three-year secondary market benchmark of 10.64% on Tuesday.
AKK accepted HUF 14.3 billion of the offers for 2012/C bonds, which mature on October 24, 2012. Dealers offered HUF 63.7 billion of the bonds. Average yield was 10.34%, below the three-year benchmark.
Settlement of the auction on May 6 will reduce the stock outstanding of 2010/D bonds to HUF 465 billion, the outstanding stock of 2011/B bonds to HUF 371 billion and that of 2012/C bonds to HUF 527 billion, Econews calculated based on data on AKK’s website.
Including the current auction, AKK has repurchased HUF 465 billion of bonds at reverse auctions so far this year. (MTI-Econews)