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AKK raises offer on strong demand at bond auction

The Government Debt Management Agency (AKK) raised its offer on strong demand at an auction of bonds on Thursday. AKK raised its original offer for five- and ten-year bonds, for which demand was the strongest.

AKK sold HUF 20 billion of three-year bonds, the announced amount. Offers for the papers came to HUF 40.6 billion. Average yield was 6.82%, 1bp under the secondary market benchmark set on Wednesday and 31bp under the yield at the previous auction of the bonds two weeks earlier. Yields ranged between 6.79% and 6.86%.

AKK sold HUF 17 billion of five-year bonds, raising its original offer by HUF 2 billion after primary dealers submitted bids for HUF 45.2 billion. Average yield was 6.87%, 8bp under the secondary market benchmark and 27bp lower than the yield at the previous auction two weeks earlier. Yields were in a narrow range between 6.85% and 6.88%.

AKK sold HUF 17 billion of ten-year bonds, also raising its original offer by HUF 2 billion after receiving bids for HUF 43.3 billion. The average and the only yield was 7.09%, 3bp under the secondary market benchmark and 27bp lower than the yield two weeks earlier.

At a non-competitive tender after the auction AKK sold another 6.4 billion of the bonds. It accepted HUF 391m of a total of HUF 7.4 billion of offers for the three-year bonds, none of the HUF 5.6 billion of offers for five-year bonds and HUF 6.0 billion of the HUF 6.2 billion of offers for the ten-year bonds. (MTI-Econews)