MF fails to sell bonds at switch
The Ministy of Finance failed to sell any of the two-, five- or 10-year bonds during a Wednesday switch tender auction because it refused all bids, the ministry said in a statement.
The failure to sell has caused bond prices to rise in the market, which analysts say is the result of investors hoping the auction would deliver extra supply and a better chance to buy back at a better price what they had sold before the auction.
"The market reacted positively, yields fell 5-6 basis points across the curve because there is little supply of papers on the market now," said Marcin Bilbin, an analyst at Bank Pekao, in an interview with Reuters.
On Monday, the ministry said it would offer bonds and papers due in 2010, 2013 and 2017 at the switch tender in return for five and two-year papers due in 2008. The ministry said it might buy back the two- and five-year papers and bonds worth 20 billion złoty at the tender.
