Goldman Sees Orban Risk as Hungary Bonds Lag: East Europe Credit

Goldman Sachs Group Inc. said Hungarian Prime Minister Viktor Orban’s re-election means “unpredictable” policies that risk weighing on growth, as the nation’s bonds suffer East Europe’s worst returns after Russia.

Government bonds lost 1.6 percent this year in dollar terms, while the Bloomberg Emerging Market Local Sovereign Index gained 1.6 percent. The forint weakened as much as 0.6 percent from a two-month high and bonds dropped yesterday after Orban’s Fidesz party won 67 percent of the seats in parliament in an April 6 vote, according to preliminary results.