The lowest accepted yield on Hungary’s 3-month discount Treasury Bill has come to -0.01% at the Government Debt Management Agency’s (ÁKK) weekly auction on Tuesday. This is the first time we see a negative yield there. In practice this means that some investors actually paid to be able to buy the Hungarian government security.
This is how the ÁKK’s new auction system works in practice, allowing negative yields. The only blemish on today’s tender is that the issuer allotted only HUF 12 billion worth of 3-m T-bills instead of the originally intended HUF 20 bn.
The HUF 20 bn lot of the bills on offer attracted merely HUF 14.2 bn in yields from primary dealers, of which HUF 12 bn were accepted.
The average yield was 0.01%, just like a week ago, but the minimum accepted yield was -0.01%. The ÁKK underlined in an accompanying statement that this was the first time primary dealers put in bids at a negative yield.
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