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)