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AKK raises offer for bonds on big oversubscription

The State Debt Management Centre (AKK) raised its offers for both three- and 15-year bonds at an auction yesterday on big demand.

AKK sold Ft 90 billion of the three-year bonds, Ft 15 billion over the planned amount. Offers for the bonds came to Ft 263.95 billion. Average yield at the auction was 8.13%, 1 basis point under Wednesday's secondary market benchmark and 41 basis points lower than the yield at the previous auction of the bonds one month earlier.

AKK sold Ft 25 billion of the 15-year bonds, raising its offer by Ft 5 billion. Bids for the bonds came to Ft 62.55 billion. Average yield at the auction was 7.02%, 7 basis points under Wednesday's secondary market benchmark and 43 basis points lower than the yield at the previous auction of the bonds on September 14. Dealers attributed the big demand for the bonds to the market's positive assessment of the draft 2007 budget submitted to parliament early last week. (Econews, Napi Gazdaság)