Economy
ANALYST VIEW - Hungary forint still the most vulnerable among CEE currencies - Budapest Economics
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The HUF temporarily hit 259 against the euro yesterday, but managed to stabilize at slightly stronger levels by the end of the session.
“However, the forint underperformed regional peers, with the market remaining more vulnerable to shifts in global sentiment. The yield curve looks set to track the forint today, although we do not recommend buying at present levels given the sustained high level of short-term price volatility," Budapest Economics said.
Moreover, they expect the long end of the curve to underperform shorter-dated bonds ahead of Thursday's 10-year bond auction.
“However, the forint underperformed regional peers, with the market remaining more vulnerable to shifts in global sentiment. The yield curve looks set to track the forint today, although we do not recommend buying at present levels given the sustained high level of short-term price volatility," Budapest Economics said.
Moreover, they expect the long end of the curve to underperform shorter-dated bonds ahead of Thursday's 10-year bond auction.
