Hungarian bond yields jump on Greek news

Sellers ruled Hungary’s government securities market on Monday morning, with yields on long maturities going up 20-25 basis points, Portfolio has learned from market sources. Since then, however, buyers have become more active than usual.


The Hungarian government securities market shows similar developments as global ones. After a sharp rise in yields after opening, investors have started to calm down. According to Portfolio’s market sources, the yields on longer bonds went up 20-25 bps. The yield on the 10-yr benchmark is back north of 4.00% after closing at 3.83% on Friday (26 June). Since then, however, the wrinkles on investors’ foreheads started to smoothen out and buyers have apparently returned to the market in larger numbers, as a result of which yields have started to correct.

Turnover may be bigger than average but we have seen no panicky reactions. There were a few larger deals but no abrupt, hasty activity is seen, market sources added. On global markets, the "periphery" yields that opened with a 25-30 bp jump in the morning have set on a corrective path after the first negative reactions and are just 15bp above compared to their Friday closing levels.
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