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Eurobond Sale Sees Firm Demand, Three Times Oversubscribed

HUNGARY
  • Retail sales data came in a touch below expectations, at -7.6% vs. Exp. -7.4%. The marked the eighth consecutive month in negative territory, but is off the lows of -13.2% in March.
  • Following the tweak to issuance schedules earlier this week, Hungary issued €1.75bln of 10y €-bonds yesterday, with demand seen firm: the issue was three times oversubscribed. The bond pays 5.375%, midswaps +235bps.
  • Following the issue, the finance ministry confirm that the ratio of FX debt will hold below 30%, significantly below the 50% ratio touched in 2010. Local reports suggest that the proceeds of the bond sale could be used to finance the transaction behind the purchase of 51% of Budapest Airport, estimated to total €4bln.
  • There are no notable further releases due Wednesday, with focus on tomorrow's industrial production release as well as Friday's CPI.

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