Yields on Hungary’s bonds drop at latest auction on healthy demand.

By bne IntelliNews December 13, 2013

The Hungarian state debt manger AKK sold a combined HUF 40bn (EUR 131.8mn) in three-, five- and ten-year fixed-rate bonds at an auction on December 12, in line with the initial offer, the agency said in a statement. Investors’ bids totalled HUF 105.3bn, down from HUF 119.6bn at the previous auction held a couple of weeks ago, when it raised the initial offer by HUF 9bn.

AKK sold the planned volume of HUF 18bn of three-year bonds on December 12. The issue lured bids of HUF 50.7bn, providing a relatively healthy coverage over the supply. Demand rose from HUF 40.7bn at the previous auction. The average yield at the latest auction reached 4.09%, down by 3bps from the previous tender and 3bps under the secondary benchmark fixing.

AKK floated HUF 13bn in five-year bonds as initially announced. Demand dropped to HUF 35.9bn from HUF 42.4bn at the previous auction. The average yield stood at 4.77%, which was 4bps under the secondary market benchmark and 19bps below the yield at the previous tender.

The state debt authority placed HUF 9bn in ten-year bonds. Investors’ bids came in at HUF 18.7bn, down from HUF 36.5bn at the previous tender. The average yield stood at 5.79%, decreasing by 19pps from the previous auction and in line with the secondary benchmark fixing.

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