Economy
Market players sell back huge amount of debt to Hungary's ÁKK
The ÁKK has offered to buy back HUF 5 bn worth of government securities at an auction today, but players offered HUF 44.3 bn + HUF 28.7 bn in the 12-m segment. The debt manager accepted only HUF 57 bn of these.
We have seen a similar sized buyback in mid-April, but this does not mean that market players (e.g. Templeton which has sizeable holdings of Hungarian debt) would be exiting the local market. We will see more in this respect at the upcoming bond auctions, i.e. whether these funds will be reinvested or not.
Primary dealers told Portfolio that this was rather profit taking in this segment, in their view. This means that market players do not expect yields to go much lower than they already are therefore they choose to sell their exposure. Over the last few weeks about HUF 100 bn worth of government securities were bought back by the ÁKK.
We have seen a similar sized buyback in mid-April, but this does not mean that market players (e.g. Templeton which has sizeable holdings of Hungarian debt) would be exiting the local market. We will see more in this respect at the upcoming bond auctions, i.e. whether these funds will be reinvested or not.
Primary dealers told Portfolio that this was rather profit taking in this segment, in their view. This means that market players do not expect yields to go much lower than they already are therefore they choose to sell their exposure. Over the last few weeks about HUF 100 bn worth of government securities were bought back by the ÁKK.
