AKK raises float of government bonds on primary auction

The State Debt Management Agency (AKK) sold HUF82.5bn of three-, five- and ten-year government bonds on the latest primary auction, according to AKK data. The issued amount was significantly above the initially offered HUF55bn as the AKK allowed oversubscription on all three maturities. The AKK capitalized on strong demand on the tender with total bids reaching HUF193.8bn, providing a comfortable 3.5x bid-to-cover ratio over the original offer. Demand was mainly directed to the five-year bonds with the coverage ratio being the highest in the case of the five- and ten-year bonds. Average yields on the auction declined slightly compared to the respective secondary market benchmark rates but still remained significantly higher than on the previous auction a couple of weeks ago.

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