Investors demonstrated relatively poor demand for the 6-month T-bill at the auction organized by the State Debt Management Agency. Total valid bids amounted to HUF73.5 billion against the HUF40 billion offer of AKK, but the agency still placed the entire amount. The average yield achieved at the auction stood at 6.60%, which is 39 basis points above the average yield at the previous tender for similar papers (on March 8) and 25bps above the March 21 secondary market benchmark.
Meanwhile, the forint further slipped on the FX interbank market trading at 266.55/70 against the EURO in late afternoon yesterday. The weakening broadly mirrored similar trend in the Polish zloty, where the political situation remains rather unclear. Despite the volatility on the FX market, we note that the central bank had no significant presence, in line with the most recent statements that NBH is not much concerned with the FX rate unless it exerts “lasting” impact on the mid-term inflation target.