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2-Year JGB Supply Passes Smoothly


2-Year Auction Results


Off Asia Cheaps


PREVIEW: 2-Year JGB Supply Due


Curve Twist Steepens, Futures Narrow

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  • Selling pressure on HUF has remained elevated following the NBH decision to hike by 15bps this week.
  • A 30bps hike could have eased the volatility on the long end of the interest rate curve and benefit the forint in the short term.
  • HUF is one of the weakest FX performers among the EM world in recent weeks, down 5.5% against the USD and 4.1% against the Euro since the start of September.
  • EURHUF keeps testing new highs and is currently trading at its highest level since April 2021. Next level to watch on the topside stands at 365.
  • Key resistance on EURHUF remains at 370; policymakers have been carefully watching this resistance as a break above that level could definitely lead to higher volatility in both equity and bond markets as the uncertainty over the economic recovery will continue to rise (see chart).
  • A break above that level may lead to a more aggressive hike at the next meeting (Nov. 16).

Source: Bloomberg/MNI