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MNB refuses all bids at last mortgage bond purchase tender

The National Bank of Hungary (MNB) accepted none of the HUF 10.8 billion bids it received at its eleventh - and last - secondary-market purchase tender.

The MNB announced last week it would not continue beyond the end of 2010 its HUF 100 billion mortgage bond program launched to prop up market liquidity and forint lending early in February.

The previous tender held on November 17 attracted no bids.

The MNB offered to repurchase the same nine series as at the previous two tenders. Three of the bonds it offered to repurchase were issued by Unicredit Jelzálogbank, three by FHB Bank and three by OTP Bank mortgage unit. The bonds maturity varied between 2011 and 2014.

Bidders offered to sell the central bank mortgage bonds maturing in 2011 at an average yield of 5.90%, and bonds maturing in 2013 at yields varying between 8.10% and 8.30%. The bulk or HUF 10 billion of the selling offers were for a bond due in 2013 issued by OTP Morgage Bank.

The MNB has purchased HUF 7.3 billion in mortgage bonds on the primary market (all in one five-year FHB bond series) and HUF 27.4 billion in mortgage bonds on the secondary market under the program. (MTI – Econews)