Hungary 10-Year Yield Falls to 5.16% as Gap With UK Bonds Shrinks
Updated
Updated · Bloomberg · Jun 25
Hungary 10-Year Yield Falls to 5.16% as Gap With UK Bonds Shrinks
3 articles · Updated · Bloomberg · Jun 25
Summary
Hungary’s 10-year benchmark yield has dropped to 5.16%, leaving it within 0.5 percentage point of comparable UK gilts after a sharp rally in the country’s debt.
That move reflects stronger investor backing for the new government’s plans to repair the economy and steer Hungary toward joining the euro area.
The repricing has been swift: since March, the extra yield investors demanded to hold forint bonds over UK debt has narrowed from 2.6 percentage points to less than 0.5 point.
Yields nearing UK levels signal a marked improvement in market confidence in Hungary’s policy direction and economic outlook.