Hungary raises bond offer at primary auction on strong demand, yields mixed.

By bne IntelliNews January 10, 2014

The Hungarian state debt manger AKK sold a combined HUF 62.5bn (EUR 208.2mn) in three-, five- and ten-year fixed-rate bonds at an auction on January 9, rising the initial offer by HUF 17.5bn on strong demand, the agency said in a statement. Investors’ bids totalled HUF 141.3bn, providing a healthy coverage ratio over the initial supply for all three types of issues.

AKK sold HUF 25bn worth of three-year bonds, up from HUF 5bn initially planned. The issue lured bids of HUF 50.2bn. Demand remained relatively unchanged from the previous auction. The average yield at the latest auction reached 4.32%, up by 23bps from the previous tender and 41bps over the secondary benchmark fixing.

The state debt authority raised the float by HUF 7.5bn for five-year bonds and sold a total of HUF 22.5bn. Demand rose to HUF 52.2bn from HUF 35.9bn at the previous auction. The average yield stood at 4.86%, which was 11bps over the secondary market benchmark but 9bps under than the yield at the previous tender.

AKK placed HUF 15bn in ten-year bonds, raising the float by HUF 5bn. Investors’ bids came in at HUF 38.9bn, up from HUF 36.5bn at the previous tender. The average yield increased by 16pps from the secondary benchmark fixing but dropped by 7bps from the previous auction.

Related Articles

V4 leaders positive after dinner with European Commission president

The head of the European Commission Jean-Claude Juncker held talks with leaders of the Visegrad Group at a nearly three-hour dinner on October 19.  The dinner on the eve of the EU summit was ... more

Wizz Air applies for UK license as it prepares for Brexit turbulence

Hungary-based no-frills airline Wizz Air has set up subsidiary in the United Kingdom and is considering acquiring an air operators certificate (AOC) in preparation for possible negative impacts ... more

Hungarian retail investors continue to pile into domestic government bonds

The stock of government bonds held by households rose by HUF154bn (€500mn) September to an all-time high of HUF6.5 trillion, Hungary’s Government Debt Management Agency (AKK) said on October 16. ... more