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MNB offers to buy HUF 25 billion gov’t bonds

Hungary’s Central Bank (MNB) said Monday morning it offers to buy a combined HUF 30 billion of three government bond series from primary dealers at an auction later in the day.

The volume is down from the HUF 30 billion offer and purchase at the last auction a week ago.

The MNB is ready to buy HUF 10 billion of 2010/B bonds, HUF 10 billion of 2010/D bonds, and HUF 5 billion of 2012/C bonds on Monday.

The auction is the sixth of regular weekly auctions introduced as part of an agreement between the MNB and primary dealers announced on October 16. The agreement aimed at boosting liquidity of government securities market.

The MNB bought a combined HUF 203.56 billion at the previous five actions held since October 17.

Under auction rules the MNB reserves the right to modify the announced amount of purchased bonds by plus or minus 25% depending on the number of offers made at the auctions. The MNB also said that it also reserves the right to nullify the auctions for each individual type of bond. (MTI - Econews)