MNB three-month FX swap tender continue to attract no bids
The National Bank of Hungary (MNB) received no bids for three-month floating rate EUR/HUF swaps at its weekly tender on Monday.
Except for the €35m bids and allocation two weeks earlier the facility went without bids since September 12.
The MNB offered a maximum of €400m three-month swaps, and the swaps were offered at a maximum 255.52 swap points on Monday. With €150m swaps expiring on Wednesday, the outstanding volume will drop to €695m on the October 26 settlement day, Econews calculated.
The stock has fallen after reaching €1.48bn on September 5, its highest level since early February.
Demand for the facility rose for most of August parallel with the steep strengthening of the Swiss franc, in which a large part of the Hungarian retail loan stock is denominated, against the forint. It vanished after the Swiss National Bank announced a 1.20 CHF/EUR target early September.
The MNB has been offering three-month floating-price EUR/HUF swaps since March 2009. It also has been operating one-day FX swaps daily since October 2008. The swap facilities, with two other ones already eliminated, were launched to ease Hungarian banks' access to FX financing.
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