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No bids in MNB three-month forex swap tender

The National Bank of Hungary (MNB) received no bids for three-month floating rate EUR/HUF swaps at its weekly tender on Monday. The previous two tenders attracted bids totaling €75 million.

The MNB offered the usual maximum of €400 million three-month swaps at maximum accepted 247.68 swap points for expiry on August 24. With no expiries, the outstanding volume will remain at €477 million on the May 25 settlement day, Econews calculated.

The stock reached an all-time high, of €1.922 billion, at the end of 2010 as liquidity on the interbank swap market narrowed due to rising swap market spreads and seasonal factors. After no bids between February 14 and February 28, interest for the central bank three-month EUR/HUF swaps revived in March and varied in April and May.

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 forex swaps daily since October 2008. The swap facilities were launched to ease Hungarian banks' access to forex financing.