Hungary raises offered bond volumes again on stable demand.

By bne IntelliNews March 11, 2011
The Hungarian state debt manger placed HUF 65bn (EUR 238mn) in three fixed-rate bonds instead of the originally planned HUF 45bn (EUR 165mn) on March 10, as demand stood at HUF 170.7bn (EUR 625.9mn), but average yields decreased from the previous auction on February 24, the authority reported. The yields on three-year bonds reached an average of 6.92% at the auction, which is by 6bps above Thursday's secondary market benchmark and 7bp under the yield at the auction two weeks ago. The accepted yields ranged from 6.89% to 6.94%, as the range was below the bids offered at the previous auction. The authority placed by HUF 10bn more than the initially planned HUF 20bn, with the three-year bond issue attracting HUF 80.2bn worth of bids. The state debt manager raised also the amount of sold five-year bonds by HUF 5bn to HUF 20bn. The average yield reached 7.31% or 2bps over the benchmark fixing, but 8bps below the previous auction, with offered yields ranging between 7.29% and 7.33%. The placed bids were for HUF 59.7bn. The authority placed HUF 15bn in fifteen-year bonds, increasing the initially planned amount by HUF 5bn, at an average yield of 7.44%, 5bps over the secondary market benchmark, but again decreasing by 7bps from the yields two weeks ago. Primary dealers bid for HUF 30.8bn, as demand almost doubled. The accepted yields varied from 7.4% to 7.47%, compared to the 7.52%-7.57% range offered on February 24. As many as HUF 6.1bn in bonds were sold at non-competitive tender after the auction.

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