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Demand high, yields over secondary market at three-month T-bill auction

Demand remained high at almost three times of the offer but the Government Debt Management Agency (AKK) sold only the announced HUF 40bn three-month discount T-bills at an auction on Tuesday. Auction yields dropped from a week earlier but were over the secondary market.

AKK sold the announced HUF 40bn of the bills expiring on February 29, 2012 as primary dealers bid for HUF 116.1bn, slightly more than the HUF 113.8bn bids submitted at the previous auction.

Average yield was 6.63%, down 8bp from the previous auction held one week earlier but 18bp over the secondary market benchmark calculated on a bill expiring on March 7 next year.

Yields ranged still in a wide band between 6.25% and 6.74% as against a band of 6.44% and 7.08% one week earlier.