The National Bank of Hungary (MNB) received and accepted €295m bids for floating-rate three month EUR/HUF swaps at its regular weekly tender on Monday.
Demand and allocation dropped from €560m one week earlier, when demand rose to the second highest level since the launch of the facility early 2009. The MNB allocated the €400m on offer last week, a day before the expected announcement of infringement proceedings against Hungary by the European Commission, and the stock of three-month swaps outstanding rose rose to an all-time high of €2.345bn on January 18.
The MNB offered the usual €400m floating-rate three month EUR/HUF swaps at a maximum price of 335.54 swap points on Monday, and allocated the €295m sought at between 316.00 and 335.00, on average at 326.40 swap points. With no expiry on the January 25 settlement day, the stock outstanding of the three-month EUR/HUF swaps will remain at €€2.345bn.
The MNB operates two EUR/HUF swap facilities to banks, a one-day one operated daily and the three-month one once a week on Mondays.