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Hungary central bank three-month FX swap tender attracts no bids

The National Bank of Hungary (MNB) received no bids for floating-rate three month €/HUF swaps at its regular weekly tender on Monday.

Except for two occasions with limited-volume bids on February 6 and on March 12, the weekly tenders have attracted no demand since the end of January.

The MNB offered the usual €400 million floating-rate three month €/HUF swaps at a maximum price of 289.21 swap points.

With no swaps expiring on the March 28 settlement day, the stock outstanding of the three-month €/HUF swaps will remain unchanged at €1.250 billion on Wednesday.

Interest in the facility was high, reflecting partly a seasonal year-end liquidity squeeze, in December and January, and the stock outstanding of the swaps reached an all-time high of €2.345 billion on January 25. 

The MNB operates two €/HUF swap facilities to banks, a one-day one operated daily and the three-month one once a week on Mondays.