Stock of forint liquidity swaps reaches record HUF989bn

The total stock of the forint liquidity swaps rose to a record high of HUF989bn after yesterday’s latest tender, the National Bank of Hungary (NBH). The NBH allocated HUF116.4bn of swaps on the tender with maturities of one-, six- and twelve months. One-month swaps amounted to HUF13.3bn on the tender, six-month swaps – to HUF3.1bn and twelve-month swaps – to HUF100bn. The NBH had also offered HUF25bn of three-month swaps but it received no bids.

The average maturity of the forint liquidity swap stock was extended significantly after yesterday’s tender, the NBH said without giving specific figures. Out of the total swap stock, HUF63bn are one-month swaps, HUF424bn are three-month swaps, HUF253bn are six-month swaps and HUF250bn are twelve-month swaps as of Sep 27.

As we reported, the MPC signaled that it will increase the volume of swap contracts for the purpose of stimulating the pass through of the monetary easing to the longer end of the yield curve. The NBH said that it continuously monitors liquidity developments and was ready to launch further liquidity swap tenders in case of substantial and lasting discrepancies.

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