Hungary’s Euro Dream Is Reshaping East European Bond Markets

Hungary’s ambition to join the euro is changing the hierarchy of eastern European bond markets in a way that hasn’t been seen in years.

For the first time since 2020, Hungary’s borrowing costs are lower than Poland and the gap over Czech Republic bonds has fallen by two percentage points since March. It’s a shift that underscores how investors have changed their mind on some of the region’s biggest economies as new Prime Minister Peter Magyar embarks on a mission to bring Hungary into the European mainstream.