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Sell-side Split Between 15bps and 30bps Hike For The September 21 NBH Meeting

HUNGARY
  • This week, we saw that Hungary sold 4.25bn USD bonds (2bn USD maturity 2051 and 2.25bn USD maturity 2031) and another 1bn EUR (7Y maturity) as the recent series of legal dispute with the EU has been delaying the EU aid plan.
  • As a reminder, Hungary requested a total of 7.2bn EUR in grants under the recovery fund.
  • Sell-side is split between 15bps and 30bps hike for the September 21 meeting as inflationary pressures remain firm in the CEE region (CPI inflation accelerated to 4.9% YoY in August).
  • USDHUF ticks higher this morning after finding support at the 295 level earlier; resistance to watch on the topside stands at 297.50 (200DMA), followed by 299.40 (50DMA). On the downside, first support to watch below 295 stands at 292.
  • Hungary 10Y yield ticks lower this morning after retracing higher this week; resistance to watch on the topside stands at 3.09%, followed by key level at 3.22%. On the downside, first support stands at 3%, followed by 2.88% (50D/100DMA).

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