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Yields down at three-month govt bond auction

Oversubscription rose slightly and auction yields fell a tad from last Tuesday at an auction of three-month discount T-bills by Hungary's Government Debt Management Agency (ÁKK). Auction yields were below Monday's respective benchmark.

The ÁKK sold HUF 40 billion of the bills expiring on December 7, the announced amount after receiving bids for HUF 93.6 billion. Last week the ÁKK cut the same offer by HUF 5 billion after receiving bids for HUF 84 billion. Bids were down from the middle of August when they jumped to HUF 192.9 billion, their highest level this year, on August 16.

Average yield at the auction was 5.65%, 10bp under the secondary market benchmark, calculated on bills expiring on January 11 next year, and 2bp lower than the yield at the previous auction of the bills on August 23.