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Curve Shift Puts 10y Yields Within Range of YTD Lows

HUNGARY
  • Pullback in local yields continues, with 10y yields now through to the lowest levels since January and within range of the YTD lows seen in mid-January at 7.054%. Move is relatively uniform across the Hungarian curve today, with 3 - 15yr yields all lower by circa 30bps. Moves come in response to last night's government decree - taxing bank deposits and other savings products to push savings into government bonds - as covered earlier today.
  • Nagy's comments on the expected impact of the move helped markets further - as he estimated new institutional and retail demand for government bonds to amount to close to HUF 2trl.

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