Investor demand was modest at a 3-month T-bills auction organised by the State Debt Management Agency. Total valid bids amounted to 68.6 billion Hungarian Florins (HUF) against the HUF 25 billion offer of the Agency.
The average yield achieved at the auction stood at 5.89%, just one basis point below the average yield achieved at the previous auction for similar papers last week, and five points below the Monday secondary market benchmark.
However the foreign exchange and fixed income markets remained largely unaffected by the release of lower-than-expected fourth quarter GDP estimates released by Ecostat in the afternoon. The next auction is scheduled for Thursday when the agency will offer HUF 45 billion in 5-year and HUF 35 billion in 10-year T-bonds.