The Questions Investors Are Asking After Hungary's Sell-Off

Forint bonds, swaps slump most in year after rate-swap tender
Central bank seeks to achieve target along full course of plan

An employee walks up the stairway inside the Budapest stock exchange in Budapest, Hungary, on Wednesday, May 15, 2013. Hungary's economy posted quarterly growth in the first three months of the year for the first time since 2011, helped by an increase in construction output.
Photographer: Akos Stiller/Bloomberg

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By Marton Eder

January 24, 2018 at 5:00 AM UTC

Updated on

January 24, 2018 at 10:04 AM UTC

This article is for subscribers only.

The dust is settling on Hungarian fixed-income markets.

After a nervous start to the central bank’s unconventional easing last week, the bond and swap markets have pared their worst declines in more than a year. Investors are now guessing what is next in policy makers’ efforts to lower long-term borrowing costs.