Here are the details about Hungary's new USD benchmark

There are over USD 10 bn worth of bids in the books, Reuters reported on Wednesday, but the distribution between the 5-year, 10-yr and 30-yr benchmarks is unclear. Final guidance looks like this, though:

5yr at T+245 area (+/-5 will price in range), which, at a 5yr U.S. benchmark yield of 3.83%, implies a 6.26% dollar yield, but swapping it to euro will result in a lower yield;

10yr at T+285 area (+/-5 wpir). The yield on the 10yr U.S. benchmark is 3.68%, and the premium implies a 6.53% USD yield. After swapped to EUR by the Government Debt Management Agency (ÁKK), the yield will be somewhat below that, supposedly below 6.0%;

30yr at T+330 area (+/-5 wpir). The 30yr U.S. benchmark yield is 3.78%, and the premium would result in a yield over 7.0%, which should go down with the swap.

Initial price thoughts (IPTs): 5yr benchmark at T+260 area ; 10yr benchmark at T+300 area; 30yr benchmark at T+350 area. 

There's no word on how much Hungary might issue. In the 2023 financing plan unveiled in late December, the debt manager said it planned to issue forex bonds worth up to USD 4 billion, so the actual issuance could be close to that.

Hungary said in a filing with the London Stock Exchange earlier on Wednesday that it was offering to buy back dollar-denominated bonds worth a total of more than $2.7 billion, maturing this November and next year. Investors have a five-day window to make offers, i.e. we'll find out only next week how much will be bought back.

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