ÁKK: Forint retail government securities stock rises nearly HUF 100 bln in March

Telco

Net sales of forint-denominated government securities targeted at retail investors came to HUF 99.6 billion, bringing the total stock to HUF 4.067 trillion, the Government Debt Management Agency (ÁKK) said yesterday, according to Hungarian news agency MTI.

First-quarter net sales of forint government securities reached HUF 549.4 bln or nearly 75% of the targeted full-year central government deficit of HUF 761.6 bln. This implies that this yearʼs shortfall will be financed by the population, similar to last year, ÁKK noted. 

March sales slowed from February and focused on two papers before their interest/premium was cut.

Almost two-thirds or HUF 63.1 bln of the March sales came from six-month T-bills which have gained in popularity since being on sale in the outlets of retail primary dealers and not only at state treasury points of sale since the end of last November, ÁKK noted. Their stock tripled from the end of 2015 to HUF 243 bln.

Most of the remainder of the March increase was in Premium Hungarian Government Bonds (PMÁK) the stock of which rose HUF 43.3 bln to HUF 852.3 bln.

Retail investors bought HUF 3.6 bln of Bonus Hungarian Government Bonds (BMÁK) and HUF 500 million of “baby bonds” in March, raising their holdings to HUF 459.7 bln and HUF 20.5 bln, respectively. They also purchased HUF 500 mln worth of Treasury savings bills, the stock of which stood at HUF 415.3 bln at the end of March.

Retail investors sold net HUF 11.6 bln of interest-bearing Treasury bills, one-year papers designed for the general public, cutting the stock to HUF 2.076 tln by the end of March.

The stock of Premium Euro Hungarian Government Bonds (PEMÁK) were practically unchanged at €1.8 bln at the end of March. The combined stock of FX and forint-denominated retail government securities stood at HUF 4.642 tln at the end of the month.

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