Inflation slows, bonds advance with stronger forint

MNB

Hungarian bonds rose as the forint extended its rally from a record low, and after a report showed inflation slowed in June, and amid relaxing fears of the central bank’s raise of interest rates. Benchmark Hungarian debt rose with other emerging markets, sending yields down from 2 1/2 year highs, and the forint rose for a fourth day on speculation that the Federal Reserve is nearing the end of its cycle of interest-rate increases. A report showed monthly inflation slowed to 0.3% from 1% in May. “The forint has been rising, which means the need for a rate hike is much more limited,'' said Olivier Desbarres, a strategist at Credit Suisse Group in London. “Bonds are getting some support after many tough weeks, and there's no immediate problem with inflation.'' The yield on Hungary's 5.5% bond due February 2016 fell 14 basis points, to 7.60%, at 5:02 p.m. in Budapest, its lowest in three weeks. Its price, which moves inversely to the yield, rose 0.84, or Ft 84 per Ft 10,000 face amount, to 86.01. (Bloomberg, NG)

ADVERTISEMENT

Almost half of Hungarians get fringe benefits, survey shows Analysis

Almost half of Hungarians get fringe benefits, survey shows

19,000 young jobseekers hired in expanded subsidy program Government

19,000 young jobseekers hired in expanded subsidy program

Manager screenings - not just for managers Interview

Manager screenings - not just for managers

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.