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Yields drop at three-month govt bond auction

Oversubscription fell sharply from last Tuesday's extraordinary level and Hungary's Government Debt Management Agency (ÁKK) sold a reduced volume at lower yields at an auction of three-month discount T-bills on Tuesday. Yields were also down from Monday's respective benchmark.

The ÁKK sold HUF 35 billion of the bills, cutting its original offer by HUF 5 billion after receiving bids for HUF 84 billion. Bids fell back to their level two weeks earlier after jumping to HUF 192.9 billion, their highest level this year, at the previous auction on August 16.

Average yield at the auction was 5.67%, 8bp under the secondary market benchmark and 3bp lower than the yield at the previous auction of the bills one week earlier.