Hungary’s Three-Year Bond Yields Rise to Highest in Two Weeks

Hungary’s three-year government bond yields rose to the highest in two weeks after data showed the country’s inflation accelerated more than forecast in June and the government said it won’t change a disputed tax law.

The slump in the government’s benchmark notes due in 2015 lifted yields four basis points, or 0.04 percentage point, to 7.667 percent by 10:50 a.m. in Budapest. That’s the highest since June 27. The forint appreciated 0.2 percent to 287.66 per euro.

Consumer prices rose 5.6 percent in June from a year earlier, the statistics office in Budapest said today, more than the 5.4 percent-estimate of analysts in a Bloomberg survey. Hungary won’t change its new tax on financial transactions even if the European Central Bank objects to the levy, Prime Minister Viktor Orban said in a HirTV interview yesterday, a week before a delegation from the International Monetary Fund and the European Union is set to visit Budapest to discuss the country’s aid request.

“Hungarian assets may also be under pressure, since PM Orban yesterday in a televised interview said there is no way he would retreat on the financial transaction tax,” Kata Baller, a Budapest-based analyst at DZ Bank AG, wrote in a research report today.

To contact the reporter on this story: Andras Gergely in Budapest at

To contact the editor responsible for this story: Gavin Serkin at

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