Hungarian bond auction attracted decent demand
Are CEEs threatened by contagion from Ukraine?
For the time being, contagion of CEE markets from the Ukrainian crisis is limited. Yesterday, the forint hit its 2-years low in the morning but the following auction of Hungarian government bonds helped improve sentiment. The ebt management agency (AKK) sold bonds worth of 68 bln HUF maturing in 3, 5 and 10 years. The good news for the issuer is that the auction attracted unexpectedly high demand. The bad news, to the contrary, was the low price that investors were willing to pay. Compared to the previous auction two weeks ago, the average yield was higher by 22 to 36 bps on all maturities. In the Czech Republic, the koruna moved in a narrow range around 27.39 EUR/CZK, while the more volatile Polish zloty
managed to wipe out its morning loses by the end of the session.
Read the full report: FX Daily
KBC