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Morning Summary: 10Y Approaching 2.80% Key Resistance

HUNGARY


  • Covid daily new cases continue to decrease with the 7D SMA falling to 1,800, down from 9,300 (March 26 high) and from 2,600 the previous week. The number of people who received at least one dose of the Covid vaccine has surpassed 4 million today (40% of the population) at the end of last week, leading to a gradual reopening of the economy.
  • PM Orban mentioned on state radio on Friday that vaccination capacity has been exceeding demand.
  • On Friday, March PPI rose to 9.6%, up from 8.1% the previous month, the highest level since August 2006, confirming the firm trend in inflationary pressure.
  • Yesterday, economic data showed that April manufacturing PMI bounced back above the 50-poinit threshold to 50.8 (vs. 51 exp.).
  • Next economic data to watch will be retail sales and industrial production both coming out on May 6. The NBH is also expected to keep its 1W deposit rate steady at 0.75% at its weekly meeting on Thursday.

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