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Central Bank buys Ft 50 bln of gov’t bonds

Hungary’s Central Bank (MNB) said it bought a combined Ft 50 billion, the announced amount, of three benchmark government bonds from primary dealers at an auction on Friday.

It purchased Ft 25 billion of the 2011/C bond at an average yield of 12.06% after receiving selling offers of Ft 46 billion. Yields in accepted offers varied between 11.90% and 12.20%. The yields compare to a three-year secondary market benchmark yield of 12.06% on Friday.

The MNB purchased Ft 20 billion of 2012/C bonds at an average yield of 11.57%. Offers of the bond totaled Ft 38.4 billion. Accepted yields were between 11.52% and 11.65%. The benchmark yield on the closest five-year maturity was 11.81% on Friday

The Bank accepted Ft 5 billion bids of the Ft 6.97 billion received for 2019/A bonds. The average yield came to 9.67%, and yields varied between 9.65% and 10.01%. The ten-year benchmark yield was 9.65% on Friday.

All volumes accepted were equal to the pre-announced amounts.

The auction in which the MNB purchased government bonds from primary dealers was the first one of regular auctions introduced as part of an agreement between the MNB and primary dealers announced on Thursday. The agreement aims at boosting liquidity of government securities market. (MTI – Econews)