Hungarian state debt manager significantly increases three-month T-bill issuance

The State Debt Management Agency (AKK) sold HUF 60.0bn of three-month T-bills on the latest primary auction, according to AKK data. The issued amount was 50% higher than the original plan. We find this to match our expectations, based on the relatively low level of the liquid government reserves at the central bank. The oversubscription was allowed by healthy demand, which was still not significantly higher than on the previous auction last week. Total bids amounted to HUF75.4bn, representing a generally average bid-to-cover ratio of 1.9x. The average yield on the auction was zero and remained unchanged from the previous auction. It was up by 2bps from the secondary market benchmark rate.

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