MNB buys just under HUF 10 bln of bonds at QE auction
Image by Jessica Fejos
The National Bank of Hungary (MNB) bought HUF 9.98 billion of government bonds at an auction on Tuesday held in the framework of an assets purchase program launched in May, according to a report by state news wire MTI.
Photo by Jessica Fejos
MNB accepted HUF 8 bln of HUF 24.75 bln of bids to sell 2038/A bonds, buying the securities at a weighted average yield of 2.69%. The yield was 3 bp over the 15-year secondary market benchmark and 7 bp higher than the yield at the previous QE auction one week earlier.
It accepted HUF 1.98 bln of HUF 19.2 bln of bids to sell 2041/A bonds at a weighted average yield of 2.82%. The yield was 3 bp over both the 20-year benchmark and the yield at the QE auction a week earlier.
MNB held four weekly QE auctions in May, before a hiatus that lasted until the end of July.
After a monthly policy meeting late on July 21, MNB rate-setters said the central bank would start buying "limited amounts" of government securities with maturities over 15 years "to improve monetary policy transmission", but added that the MNB continues to consider the program a "safety net, which it intends to use if and to the extent necessary".
The central bank bought HUF 10 bln of bonds at a QE auction on July 28 and another HUF 10 bln at a QE auction on August 4.
Hungary Gasoline Prices 3% Over Regional Avg
Gov't Wants Sustainable Business Model for Magyar Posta
120,000 Guest Workers Employed in Hungary
Budapest Airport Wins 'Best Airport in Eastern Europe' for 1...
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
