Forint Retreats After Biggest Rally in 6 Months as Bill Sale Cut
The forint retreated after the biggest weekly rally in six months as Hungary cut its offer of six-week Treasury bills at an auction amid lower bids from investors.
Demand for riskier assets fell today amid signs political uncertainty in the euro area’s weakest economies was returning. Hungary raised 40 billion forint ($184.6 million) in debt, 10 billion forint less than planned at today’s sale, according to results from the Debt Management Agency on Bloomberg. Investors bid for 56 billion forint in debt, compared with 149 billion forint at the last sale of that maturity on Jan. 7.
The forint weakened 0.5 percent to 293.74 per euro by 3:33 p.m. in Budapest. The currency of Hungary, the most indebted nation in the east of the European Union, jumped 1.7 percent last week, the second-biggest rally among more than 100 currencies tracked by Bloomberg. The average yield at the bill auction was 5.50 percent, compared with 5.66 percent at the last sale.
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