Due to a national holiday, Hungary’s Government Debt Management Agency (ÁKK) has brought forward its biweekly auction from Thursday, and allotted HUF 76 billion worth of debt instruments instead of the planned HUF 60 bn. Demand was large for the 5-year and 10-year bonds, and the debt manager raised the allotted volumes in these segments.
The issuer has received HUF 39.2 bn worth of bids from primary dealers on a HUF 20 bn lot of 3-year bonds. The original amount was allotted at an average yield of 0.87%, the same as a fortnight ago, and a single basis point lower than the secondary market benchmark fixing on Tuesday.
A HUF 25 bn lot of 5-year bond attracted HUF 68.1 bn in bids, so the debt manager allotted 30% more, HUF 33.5 bn of the instrument. The average yield came in at 1.44%, the same as two weeks ago and 3 bps lower than yesterday’s benchmark fixing.
A HUF 15 bn lot of 10-year bond attracted HUF 73.5 bn in bids from primary dealers. The ÁKK allotted 50% more, HUF 22.5 bn of this instrument. The average yield was set to 2.63%, 3 bps higher than at the previous auction of this maturity in early March and 5 bps lower than the secondary market benchmark fixing yesterday
The ÁKK has allotted HUF 76 bn worth of bonds at today’s auctions, versus the originally planned HUF 60 bn. Additional bonds are expected to be sold at the non-competitive auctions in the afternoon.