Hungarian central bank says to decide on possible changes to IRS ‘within days’

BUDAPEST: The National Bank of Hungary held a consultation with commercial banks and will make a decision about potential changes to its interest rate swap (IRS) tool "within days", the bank said in a reply to Reuters' questions on Wednesday.

The bank declined to provide more details.

The NBH plans to make its new IRS facility for banks fixed- rate instead of variable-rate, three banking sources told Reuters.

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.