April 12 (Bloomberg) -- Hungary’s longest-dated bonds fell the most in more than a month after inflation accelerated more than expected in March.
The slump in the bonds due in 2028 lifted the yield 10 basis points to 7.13 percent at 4:53 p.m., the biggest increase since March 10, according to data compiled by Bloomberg.
The inflation rate rose to 4.5 percent from 4.1 percent in February, the statistics office in Budapest said today. The median estimate of 13 analysts in a Bloomberg survey was 4.2 percent. Policy makers, who decided unanimously last month to keep the two-week deposit rate at 6 percent for a second month, will next meet to vote on rates on April 18.
“A significant upward surprise could lead to some temporary underperformance in long-dated bonds,” strategists at BNP Paribas SA including Elisabeth Gruie in London wrote in a research report before the inflation data was released.
The forint depreciated 0.6 percent to 266.75 per euro, the weakest intraday level since April 4.
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