BUDAPEST, Jan 24 (Reuters) - The National Bank of Hungary (NBH) will make its monetary policy interest rate swap (IRS) facility for commercial banks fixed-rate instead of variable-rate, the bank said in a statement on Wednesday.
Access to the IRS will be proportional to the size of the assets of bidders according to new rules which take effect on Jan. 29. The bank reiterated that it planned to offer 300 billion forints ($1.20 billion) worth of IRS to banks in the first quarter, and a total of up to 1.2 trillion forints over the next year.
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. ($1 = 249.3000 forints) (Reporting by Krisztina Than and Sandor Peto)