The Brexit did not affect Hungarian government bonds; demand was outstanding at the auction for three-month Discount Treasury Bills, Minister for National Economy Mihály Varga told public news agency MTI.

Mihály Varga added that bids totalled HUF 117bn, three times the amount offered; therefore the Hungarian Debt Management Agency has in the end sold securities valued at HUF 40bn, 50 percent more than the original offer of HUF 40bn. Strong market demand did not lead to rising yields, he said. Final yields were slightly lower than those at the auction one week before.

This suggests that the outcome of the British referendum will not have an impact on the financing of Hungarian government debt. The fact that investors are visibly sticking to Hungary indicates a stable Hungarian financial position, Mihály Varga pointed out.

At the weekly auction, the Hungarian Debt Management Agency accepted offers for three-month Discount Treasury Bills with an average yield of 0.83 percent, two basis points below those of the previous auction.

At the beginning of 2013 and 2014, yields on these securities averaged 5.49 percent and 2.9 percent, respectively.

(Ministry for National Economy)