László András Borbély, the deputy chief of Hungary's Government Debt Management Agency (AKK), delivered a positive assessment of Hungarian bond auctions on the whole, speaking at a conference in Pecs (SW Hungary) on Tuesday.
Borbély said there were no problems with the financing of Hungary's state debt, adding that government bond auctions were successful on the whole.
While conceding some auctions were unsuccessful because of shifting market moods, he said bond issues over the past ten months had been successful on the whole.
He noted that bond auctions had been oversubscribed by an average factor of 3.1 in 2011 and by 2.2 in the year so far. "Most Western European countries would be very happy to have such a coverage rate," he added.
Borbély said financing Hungary's state debt would be inconceivable without foreign investors. Because of this, the success of government bond issues and the development of yields are largely determined by the mood on global markets and the exchange rate of the forint, he added.
He said raising the proportion of government debt held by retail investors over the marginal levels at present would be desirable. He added that a campaign encouraging retail investors to invest in government securities launched in January would continue and be stepped up.
Borbély said yields on Hungarian government securities had swung up or down countless times over the past two years and warned against drawing conclusions regarding the path of yields in the future.