ÁKK lowers yields of short-term retail government securities

Telco

The Government Debt Management Agency (ÁKK) announced today it will lower the yields on its short-term government securities targeting the general public by 25 basis points from February 8, Hungarian news agency MTI reported.

Six-month T-bills and one-year Treasury savings bills will offer a 2.25% interest, one-year interest-bearing Treasury bills and Treasury savings Plus bills a 2.5% interest and two-year Treasury savings bills a 2.75% interest.

According to ÁKK the 2.25-2.75% interest on offer is still "outstanding" compared to similar retail financial products.

ÁKK said demand for government securities from the general public was high last year and the stock of securities held by the public grew by 46% in 2015. Demand should be high in 2016 as well and by targeting a 14% expansion of total volume of retail stocks, the yield of short-term papers could be slightly lowered.

At the end of 2015 the stock of interest-bearing Treasury bills was HUF 1,816 bln, up from HUF 1,089 bln at the end of 2014. The stock of Treasury saving bills rose to HUF 403.4 bln from HUF 355.2 bln during the same period. 

The total value of forint-denominated government securities owned by retail investors was HUF 3,517 bln at the end of last year, up from HUF 2,411 bln at the end of 2014.

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