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Retail govʼt security stock grows HUF 29.6 bln in Q1

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The outstanding stock of forint retail government securities rose HUF 29.6 billion to nearly HUF 9.104 tln in the first quarter of 2020, with subscriptions of the Hungarian Government Security Plusz bonds driving growth, the Government Debt Management Agency (ÁKK) said on Monday, according to state news wire MTI.

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Growth of the Plusz bond stock, which pays an annualized yield of 4.95%, if held for the full five-year maturity, reached HUF 675.6 bln in the first quarter, including print sales. Sales were significantly down from the previous quarter but the Plusz bond continues to be the most popular item amongst investors by far. Stock of the bond, came to almost HUF 3.872 tln at the end of March.

Retail investors redeemed net HUF 485.4 bln of One-Year Government Securities (1MÁP) in Q1, reducing the stock of the security to HUF 1.672 tln.

Retail investors subscribed net HUF 33.6 bln of Premium Hungarian Government Securities (PMÁP), raising the stock to HUF 2.552 gln as investors again saw potential in the floating rate bond.

Stock of Treasury Savings Bills (KTJ) fell HUF 39.8 bln to HUF 407.1 bln, and net sales of Baby Bonds (BABA) came to HUF 8.3 bln, raising the stock to HUF 88 bln.

Among the retail securities which the government no longer issues, stock of Treasury Savings Bills Plusz (KTJP) fell 6.4 bln to HUF 1.9 bln, stock of Two-year Government Securities (2MÁP) dropped HUF 35.5 bln to HUF 179.7 bln, stock of Bonus Hungarian Government Securities (BMÁP) were down HUF 120.9 bln at HUF 330.5 bln.

Including euro-denominated retail government securities, the total outstanding stock of Hungarian government securities reached HUF 9.281 tln at the end of Q1.

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