Hungary has never borrowed this cheaply before

Portfolio
Demand was massive for a 50 billion forint lot of Hungary’s 3-month discount Treasury Bills on Tuesday, as a result of which the average yield was set to a historic low of -0.11%. This is the cheapest the Hungarian state every borrowed, or from the other angle, this is the most investors paid Hungary so that they can keep their money in T-bills for three months.
The Government Debt Management Agency (ÁKK) has received HUF 93.7 bn worth of bids from primary dealers on its D190306 series 3-m T-bills at its weekly auction on Tuesday. Accepted yields were -0.11% and -0.10%, and the average yield was set to -0.11%, which is 5 basis points lower than a week ago, and also the lowest ever, as the chart below attest.

The ample short-maturity liquidity on the interbank market is probably the reason behind this kind of negative yield, as institutional investors have nowhere else to put their money in, as they have long been crowded out of the central bank deposits. This likely played a role in the weakening of the forint over the last few days, as the cost of funds to build up speculative positions betting on HUF easing have also dropped: the 3-month BUBOR has also fallen to 0.11% from over 0.2% last month.

' title='
 

More in Economy

Hivatalos: januártól indul az építőipari cégek támogatása
August 29, 2025 10:45

New construction starts in Hungary set an unpleasant record

The domestic construction industry has really not regained its footing

transport
August 29, 2025 09:19

Hungary's foreign trade balance on track for historic record, but signs of recovery remain weak

The first data for the second half of the year are in

moszkva-vlagyimir putyin-oroszország-hadsereg-ukrajna-konfliktus-frontvonal-orosz haderő-donyeck-orosz-ukrán háború
August 29, 2025 08:51

Hungarian-Ukrainian relations hit new low over oil pipeline attacks and army officer's entry ban

War of words breaks out, with Poland also joining in

Bosch Rexroth
August 28, 2025 14:30

GKI Economic Research Institute's economic sentiment index finally shows slight increase

Moving away from the lowest point of the post-Covid era so far

gyár termelés worker
August 28, 2025 11:31

Summer sees turnaround in domestic labor market

Employment has increased

ukrán drónerők kitiltás barátság vezeték
August 28, 2025 11:30

Ukraine's drone force commander of Hungarian nationality banned from Hungary and Schengen zone

The Hungarian government "condemns all attacks on the country's sovereignty"

LATEST NEWS
Charting is displayed using TradingView's technology, a platform, where you can build advanced charts, spot upcoming trends in the stock screener, and find inspiration in multiple trading ideas

Detailed search