Hungary would badly need funding, investors don't care

Portfolio
Hungary’s Government Debt Management Agency (ÁKK) has on Thursday put the largest lot of 12-month discount Treasury Bill up for auction in nearly a year, but due to muted demand it did not manage to allot as much as it wanted to. The issuer had greater luck with the floating-rate bond where a HUF 7 bn lot was scooped up.
The process we have seen over the last few weeks continued at today’s auction. The debt manager raised the offered lot further but at such depressed yield levels investors were not enticed. The ÁKK placed a HUF 40 bn lot of 12-m T-bills up for auction, which is the largest amount offered since the end of December 2016. The usual lots on offer at the previous auctions were HUF 15-20 bn therefore today’s lot marks a major raise. That is part of the reason why the auction was not a success and only HUF 29.8 bn worth of bids were submitted by primary dealers, of which HUF 25 bn were accepted. The average yield, however, was up at 0.03% from -0.02% two weeks ago. And now the lowest accepted yield was no longer zero; accepted yields were in a range between 0% and 0.05%.

' title='
The auction of the 5-year floating-rate bond was more successful. A HUF 7 bn lot attracted HUF 14.2 bn worth of bids, and the ÁKK allotted the original lot on offer.
 

More in Economy

kitartás-kockázat-kockázatvállalás-motiváció-szabadidő-természet
April 09, 2025 15:10

Is Hungary's budget in trouble already?

Negative risks are multiplying, but it is too early to panic

Kovács Levente Magyar Bankszövetség
April 09, 2025 13:38

Banks in Hungary pledge not to raise retail bank account fees until mid-2026

Banking Association says this is their part in the fight against inflation

bankkártya-bankszámla-biztonság-elektronikus-fizetés-hitelkártya-kártya-pénzforgalom-pénzügyek
April 09, 2025 10:15

One by one, banks announce that they comply with the government's expectations on account charges

Here are the sector's reactions to the Ministry of National Economy's ultimatum

korrupcio lefizet megveszteget
April 09, 2025 09:44

White House stands by report on trade barriers with Hungary

Report written by experts, not "dictated by David Pressman"

dunaferr dunaujváros
April 09, 2025 08:24

New investor sought for Dunaferr's assets after Indian investor's bankruptcy

Another twist in the long case

GettyImages-521151560-duna-építészet-fény-híd-közlekedés-turizmus-város
April 08, 2025 16:10

Erzsébet Bridge in Budapest to be closed for demonstration

Traffic jam can be expected

LATEST NEWS

Detailed search