Hungary raises float on strong demand at primary bond auction.

By bne IntelliNews January 13, 2012
Hungarian state debt manger AKK raised by HUF 11bn (EUR 35.5mn) the originally planned amount of the three separate issues of fixed-rate bonds it offered at the January 12 auction, MTI news agency reported. AKK sold a combined HUF 44bn at the biweekly tender, which attracted investor bids of HUF 110.5bn. Among the different types, AKK floated HUF 20bn in three-year bonds, HUF 5bn more than the initial offer. The issue attracted HUF 52.8bn worth of bids. The average yield stood at 9.41%, 110bps over the yield at the last tender on December 15 but 4bps under the secondary market benchmark. The debt manager sold HUF 12bn of five-year bonds, raising the initial offer by HUF 2bn, on the back of healthy demand of HUF 24.8bn. The yield averaged 9.41%, 22bps bellow the yield at the previous auction a couple of weeks ago and 12bps under the secondary market benchmark. AKK also raised the initial offer for ten-year bonds by HUF 4bn to HUF 12bn. Investors filed bids worth HUF 32.9bn. The average yield dropped 32pbs from the previous auction to 9.38%. It was also 10bps bellow the secondary market benchmark rate.

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