Stock of retail government securities grows HUF 500 bn in six months
HUF 9,618 billion
The total volume of forint-denominated retail government securities rose to HUF 9,618 billion by the end of June, 5% higher than in December and 8.5% higher than in June 2020.
As for individual categories,
- the highest amount of savings is still in the MÁP+ superbond, with its printed and dematerialised versions totalling HUF 5,776 bn at the end of June, accounting for more than 60% of all forint-denominated securities;
- the second biggest category was Premium Hungarian Government Security with HUF 2,358 bn;
- followed by the one-year government security with slightly more than HUF 1,000 bn;
- the stock of bonus government security was the lowest in June, while the two-year Hungarian government security expired in recent months.
Looking at the changes in volumes, we see that only the Hungarian Government Security Plus (MÁP+) registered substantial growth, with its stock increasing by nearly HUF 555 bn in the first half.
The inflation-linked government security performed well in the last quarter of 2020 but ran out of steam in Q2 this year, although this may be explained by a sizeable HUF 92 bn maturity in May. Accounting for this, the volume of the security grew by about HUF 70 bn in the second quarter as well as in the first.
Monthly sales around HUF 100 bn
As reported earlier, the era of monthly sales of several hundred billion forints in superbonds has passed, but the security still maintains monthly subscriptions of more than HUF 100 bn. This means that it is effectively up to the MÁP+ bond whether the Government Debt Management Agency (ÁKK) will be able to reach its planned HUF 1,000 bn growth in retail government securities. Looking at current numbers, it could easily come true.
The Baby Bond is also included in retail government securities, with its volume growing to more than HUF 126 bn by the end of June. This translates to nearly 15% growth in six months and 36% year on year.
The Baby Bond is a good choice for anyone with a child under 18 as it offers a 3pp interest premium above inflation, making it by far the most attractive retail government security in the market.
Cover photo: Getty Images
