MNB three-month FX swap tender continued without bids
The National Bank of Hungary (MNB) received no bids for floating-rate three month EUR/HUF swaps at its regular weekly tender on Monday. This was the sixth tender without bids in a row.
Except for two occasions with limited demand on February 6 and on March 12, the weekly tenders have attracted no bids since the end of January.
The MNB offered the usual €400 million floating-rate three month EUR/HUF swaps at a maximum price of 300.61 swap points.
With €295 million swaps expiring on the April 25 settlement day, the stock outstanding of the three-month EUR/HUF swaps will drop to €70 million on Wednesday.
Interest in the facility was high, reflecting partly a seasonal year-end liquidity squeeze, in December and January, and the stock outstanding of the swaps reached an all-time high of €2.345 billion on January 25.
The MNB operates two EUR/HUF swap facilities to banks, a one-day one operated daily and the three-month one once a week on Mondays.
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