MNB allocates HUF 75 bln of MIRS to flatten yield curve

Telco

Photo by Jessica Fejos

The National Bank of Hungary (MNB) allocated HUF 75 billion of monetary policy interest rate swap (MIRS) instruments at the first tender for the facility designed to flatten the yield curve on Thursday, state news wire MTI reported.   

MNB policy makers decided in November to launch the monetary policy interest rate swap (MIRS) facility, setting a HUF 300 bln allocation for the first quarter of 2018. Unlike interest rate swaps conditional on lending activity that the central bank offered earlier, the new MIRS facility is unconditional.

At the tender on Thursday, the central bank allocated HUF 35.0 bln of five-year MIRS and HUF 40.0 bln of ten-year MIRS. The allocation of the five-year swaps was in line with the announced offered amount, but the allocation of the ten-year swaps was more than double the HUF 15.0 bln announced amount.

Lendersʼ bids came to HUF 295.6 bln for the five-year swaps, and HUF 277.5 bln for the ten-year swaps.

The average accepted fixed rate was 0.76% for the five-year swaps and 1.46% for the ten-year swaps.

The secondary market yield on the benchmark five-year government security was 1.03% on Thursday. The ten-year benchmark yield was 2.05%.

The central bank will hold the tenders for the floating rate-paying MIRS facility every other Thursday.

MNB policy makers also decided in November to start buying up to 70% of lendersʼ mortgage bonds to bring long-term interest rates down.

ADVERTISEMENT

Job ads in hospitality, tourism sector grow drastically  Analysis

Job ads in hospitality, tourism sector grow drastically 

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Breast cancer screening at Dr. Rose Private Hospital Interview

Breast cancer screening at Dr. Rose Private Hospital

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.