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AKK raises offer for shorter terms at bond auction

The Government Debt Management Agency (AKK) raised its offers for the two shorter terms at a bond auction on Thursday as demand was strong.

AKK sold HUF 25 billion of three-year bonds, raising its original offer by HUF 5 billion after primary dealers submit bids for HUF 79.9 billion.

Average yield at the auction was 6.64%, 10bp under the secondary market benchmark and 6bp lower than the yield at the previous auction of the bonds two weeks earlier. Yields ranged between 6.60% and 6.64%.

AKK sold HUF 20 billion of five-year bonds, HUF 5 billion more than planned. Bids came to HUF 59.5 billion.

The only yield for the bonds was 7.12%, 12bp under the benchmark but 1bp over the yield at the previous auction two weeks earlier.

AKK sold HUF 10 billion of ten-year bonds, in line with the original offer. Dealers bid for HUF 26.3 billion.

Average yield was 7.36%, 3bp under the benchmark but 15bp over the yield at the previous auction of the bonds four weeks earlier. Yields ranged between 7.30% and 7.37%.