Hungary central bank buys HUF 10 bn in bonds in QE programme
The central bank launched its quantitative easing (QE) programme in May with a HUF 1,000 bn budget but has only bought about HUF 150 bn worth of bonds since.
At today’s auction, investors submitted bids totalling HUF 10.4 bn for the 2038/A series bonds, of which the MNB accepted HUF 8 bn. The weighted average yield was 2.55%, 2bp lower than Monday’s secondary market benchmark. The central bank now holds HUF 29.8 bn of the bond, or 11.1% of the total amount.
Investors offered HUF 10.3 bn of the 2041 series bond for sale, of which the MNB accepted HUF 2 bn. The weighted average yield was 2.66%, 1bp below the Monday reference value. The central bank holds HUF 8.3 bn of the government bond with the longest maturity, or nearly 18% of the total.
Cover photo: Getty Images
