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.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Hungarian owners take back ownership of leading e-retailer

The two Hungarian businessmen with minority stakes in Extreme Digital, Hungary's leading electronics retailer, have purchased back 50.4% of its shares from South African company Steinhoff ... more

Finland gives final nod to construction of Nord Stream II

Finland has issued a second and final permit for the construction of the controversial Nord Stream II pipeline that is to pump gas from Russia directly to Germany via a Baltic Sea route, the Regional ... more

Lufthansa's arrival lifts economy of Hungary's second city

Three large German companies have chosen to invest in Debrecen, Hungary's second-largest city, since Lufthansa launched its first direct flight two years ago, it was announced on April 11.  ... ... more

Most Read

  1. Europe pushes back against US sanctions on Russia
    3 days ago
  2. Romanian developers get in the game
    7 days ago
  3. Putin and Trump trying to walk back Syria strike and sanctions tensions
    8 days ago
  4. What’s the cost of US sanctions on Russia?
    9 days ago
  5. Alarm bells over Turkey’s economic bind ‘akin to those of 1997 Asian debt crisis’
    5 days ago
  1. Fears raised of US conditioning F-35s sale on Turkey cancelling S-400 deal with Russia
    29 days ago
  2. Europe pushes back against US sanctions on Russia
    3 days ago
  3. Romanian developers get in the game
    7 days ago
  4. COMMENT: Whisper it – ‘Erdonomics’ could be driving Turkey to a meltdown
    16 days ago
  5. Putin and Trump trying to walk back Syria strike and sanctions tensions
    8 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss