MNB allocates HUF 50 bln of MIRS at tender
The National Bank of Hungary (MNB) allocated HUF 50 billion of its monetary policy interest rate swaps (MIRS) designed to flatten the yield curve at a tender on Thursday, state news wire MTI reported.
The MNB allocated HUF 10 bln of five-year and HUF 40 bln of ten-year MIRS, in line with the announced offered amounts. Lendersʼ bids came to HUF 39.1 bln for the five-year and HUF 104.7 bln for the ten-year swaps.
The fixed rates for the swaps were 0.46% for the five-year and 1.24% for the ten-year MIRS. The rate for the five-year swap was the same as it has been at tenders since February, but the MNB raised the rate for the ten-year swap from 1.17%.
MNB policy makers decided to launch the MIRS facility in November 2017, setting a HUF 600 bln allocation for the first half of 2018.
The central bank is holding the tenders for the swaps every other Thursday.
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