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ÁKK sells less than planned 5-year, more 10-year bonds at auction

The Government Debt Management Agency (ÁKK) cut its offer for 5-year bonds and raised it for the 10-year term, selling on the whole the originally announced HUF 43bn bonds at an auction on Thursday.

Oversubscription fell on every term. And, except for a sharp drop on the 10-year term, yields rose from two weeks earlier, but all dropped significantly from Wednesday's benchmarks.

ÁKK sold HUF 20bn of three-year bonds, the announced volume. Primary dealers submitted bids for HUF 39.6bn, well down from HUF 58.5bn for the same auction offer two weeks earlier.

Average yield for the 3-year bonds was 7.23%, 10bp under the secondary market benchmark, but 58bp over the yield at the previous auction two weeks earlier.

ÁKK sold HUF 11bn of five-year bonds, cutting the announced volume by HUF 4bn. Offers came to HUF 17.6bn, just half of the demand seen on September 22.

Average yield was 7.52%, 28bp under the secondary market benchmark but 27bp over the yield two weeks earlier.

ÁKK sold HUF 12bn of ten-year bonds, HUF 4bn more than planned. Offers came to 25.6bn, dropping only moderately from HUF 28.1bn at the previous auction.

Average yield was 7.94%, 6bp under the Wednesday secondary market benchmark and 20bp under the yield at the previous auction of the bonds four weeks earlier.