The National Bank of Hungary (MNB) received no bids for three-month floating rate EUR/HUF swaps at its weekly tender on Monday.
Last week's jump of demand, to €150 million after practically no bids in the previous three weeks, proved temporary.
The MNB offered the usual maximum of €400 million three-month swaps at a maximum 200.53 swap points on Monday. In the absence of expiring swaps, the outstanding volume will remain €1.037 billion on the August 3 settlement day, Econews calculated.
Demand for the weekly tenders rose at the end of May and jumped, reflecting uncertainties surrounding Greece, by late June, but dropped back by early July.
The MNB started to offer three-month floating-price EUR/HUF swaps and six-month fixed-price EUR/HUF swaps to banks weekly in March 2009. The fixed-price six-month EUR/HUF swap facility ran out as planned by the end of 2010. The bank also offered one-week CHF/EUR swaps weekly between February 2009 and January 2010.
The bank has been operating one-day FX swaps daily since October 2008. The swap facilities were launched to ease Hungarian banks' access to FX financing.