Hungary’s Government Debt Management Agency (ÁKK) allotted 61.5 billion worth of government bonds at its biweekly auctions on Thursday instead of the planned HUF 50 bn. The average yields rose significantly, despite poor demand for the 5-year bonds.
The ÁKK has received HUF 34.2 bn worth of bids from primary dealers on a HUF 20 bn lot of 3-year bonds. The ÁKK has allotted HUF 25 bn of the instrument at an average yield of 1.74%, up 18 basis points compared to the previous auction a fortnight ago and 1 bp higher compared to Wednesday’s secondary market benchmark fixing.
A HUF 20 bn lot of 5-year bonds attracted just HUF 16 bn in bids, of which the debt manager accepted HUF 14 bn. The average yield came in at 2.95%, up by 18 bps compared to two weeks ago and 3 bps higher than yesterday’s benchmark fixing.
The longest maturity on offer this time was the 10-yr bond with a HUF 15 bn lot on offer, for which the ÁKK received HUF 38.5 bn in bids and eventually allotted HUF 22.5 bn. The average yield was 3.49%, up 20 bps from the last auction of the maturity four weeks ago and 8 bps above yesterday’s benchmark fixing.
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