Junk No More, Hungary’s Yields Drop Below A-Rated Poland: Chart

The return of Hungary’s debt to investment-grade status at S&P Global Ratings is triggering a rally in 10-year forint-denominated bonds, driving the yield below the rate on equivalent securities from higher-ranked Poland on Monday. Hungary is now ranked above junk at two agencies, making it possible for funds that can only buy investment-grade debt to start piling into the country. Poland -- whose local-currency debt is rated at A-, three steps higher than Hungary’s -- was downgraded in January by S&P, which cited risks from the government’s attempts to assert control over “key institutions.”