Hungary’s Government Debt Management Agency (ÁKK) has allotted HUF 50 billion worth of government bonds in a tender on Thursday, HUF 7 bn more than originally planned, even though global investor sentiment is far from being bright. The issuer received HUF 122.5 billion worth of bids from primary dealers on a HUF 43 bn lot. The average yields came in 4-10 basis points below yesterday’s benchmark fixings, but 79-86 bps over the avg. yields at the previous bond auction a fortnight ago. The average yield in the 10-yr segment has not been set this high for two years.
Bids for a HUF 20 billion tranche of 3-year bonds (2014/D) totalled HUF 58.5 billion, in response to which the issuer decided to sell HUF 5 bn more of the instrument than planned. At a nearly 3.0x bid/cover ratio the only accepted yield was 6.65%, down 4 bps from yesterday’s benchmark fixing, but 82 higher than two weeks ago.
The 5-year bond auction (2017/A) attracted bids totalling HUF 35.9 bn for a HUF 15 bn lot on offer. The issuer allotted no more of the instrument than originally planned. Here too was only one accepted yield (7.25%), which is 7 bps below Wednesday’s benchmark fixing and but 79 bps over the avg. yield at the previous auction two weeks ago.
The HUF 8 bn lot of 10-yr bond attracted HUF 28.1 bn in bids, as a result of which the issuer decided to allot HUF 10 bn. Accepted yields were between 8.10% and 8.18%. The average yield was set to 8.14%, 10 bps below yesterday’s benchmark fixing but 86 bps higher than at the previous auction of this maturity a month ago.
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