Hungary central bank says to continue mortgage bond purchases

BUDAPEST: Hungary's central bank will seek to maintain loose monetary conditions across the yield curve and will continue mortgage bond purchases and its monetary policy interest rate swap facility programme, it said on Tuesday.

"The Council considers the Bank's mortgage bond purchase programme to be successful. Under the programme, the NBH purchased mortgage bonds with a nominal value of some HUF 150 billion up to the middle of April," it said in a statement.

"As a result of the measures, spreads of mortgage bonds over yields in the government securities market fell sharply and turned negative on average," it said.