Are you sure?

MNB allocates HUF 50 bln of MIRS at tender

The National Bank of Hungary (MNB) allocated HUF 50 billion of 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 41.53 bln for the five-year and HUF 94.6 bln for the ten-year swaps. There were 21 banks bidding at the five-year and 20 banks bidding at the ten-year tender.

The central bank raised the fixed rate for the five-year swaps to 0.40%, from 0.37% at the previous MIRS tender two weeks earlier, and the fixed rate for the ten-year swap to 1.49%, from 1.43%.

MNB policy makers decided to launch the MIRS facility in November 2017. They set a HUF 600 bln allocation for the first half of 2018.  The bank is holding the tenders for the MIRS every other Thursday.