January 24, 2018 / 12:55 PM / a year ago

Hungarian central bank to tweak IRS tenders - banking sources

BUDAPEST, Jan 24 (Reuters) - The National Bank of Hungary (NBH) plans to make its new interest rate swap (IRS) facility for commercial banks fixed- rate instead of variable-rate, three banking sources told Reuters on Wednesday.

Access to the IRS will be proportional to the size of the assets of bidders according to a new rule, two of the sources said. The NBH informed commercial banks about the changes at a meeting earlier on Wednesday, the sources said.

The first of the NBH’s bi-weekly 5-year and 10-year IRS auctions, held last Thursday, led to a sharp rebound in IRS and government bond yields in the market because the offered amounts and yield spreads disappointed some investors.

The central bank was not immediately reachable for comment. (Reporting by Krisztina Than and Sandor Peto; Editing by Robin Pomeroy)

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