ÁKK lowers yields of short-term retail government securities

Telco

The Government Debt Management Agency (ÁKK) announced today it will lower the yields on its short-term government securities targeting the general public by 25 basis points from February 8, Hungarian news agency MTI reported.

Six-month T-bills and one-year Treasury savings bills will offer a 2.25% interest, one-year interest-bearing Treasury bills and Treasury savings Plus bills a 2.5% interest and two-year Treasury savings bills a 2.75% interest.

According to ÁKK the 2.25-2.75% interest on offer is still "outstanding" compared to similar retail financial products.

ÁKK said demand for government securities from the general public was high last year and the stock of securities held by the public grew by 46% in 2015. Demand should be high in 2016 as well and by targeting a 14% expansion of total volume of retail stocks, the yield of short-term papers could be slightly lowered.

At the end of 2015 the stock of interest-bearing Treasury bills was HUF 1,816 bln, up from HUF 1,089 bln at the end of 2014. The stock of Treasury saving bills rose to HUF 403.4 bln from HUF 355.2 bln during the same period. 

The total value of forint-denominated government securities owned by retail investors was HUF 3,517 bln at the end of last year, up from HUF 2,411 bln at the end of 2014.

ADVERTISEMENT

European e-commerce soars during pandemic - study Analysis

European e-commerce soars during pandemic - study

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.