Hungarians pile up Baby Bonds in 2019

Borbély, speaking at the opening of a retail government security sales point in Érd, said the treasury's dedicated points of sale have played a significant role in the growth of the baby bond, adding that its interest rose from 5.8% to 6.4% as of 1 February.

Demand for retail government securities in general has also increased, and households bought twice as much retail securities in 2019 than a year earlier, Borbély said. Of the HUF 1,558 bn increase in the stock of retail government securities last year, the treasury's HUF 700 bn net sales contributed HUF 700 bn, or 45%.

Opening new sales points in Érd and Budakeszi, just outside Budapest, are justified as more than half of the treasury's sales were in Budapest and the surrounding Pest county, Borbély said. The two new facilities, which will be housed in regional government offices, brings the total of the treasury's government security sales locations to 76.

The two new sales points are expected to serve 10 to 15 customers a day, with 5 or 6 new accounts opened daily, Borbély said.