Finance

Economy Minister Hails “Historic Moment” As Creditors Buy Negative-Yielding Hungarian Bonds

Since the state of Hungary began borrowing, it has been unprecedented that creditors actually paid the state for the loan, Hungarian Economy Minister Mihály Varga said on Tuesday.

It is a great and historic moment

Mihály Varga noted, adding that Hungary’s economic growth and future outlook have convinced market participants that it was worth investing in the country.

Hungarian Economy Minister Mihály Varga (photo:  Bruzák Noémi – MTI)

 

At a Tuesday auction, the Hungarian Government Debt Management Agency sold Discount Treasury Bills of HUF 15bn (EUR 50 million) at a yield of -0.02 percent, a historic low. The minimum, maximum and average yields of the bids were all negative, while the offered bonds were three times oversubscribed.

As Mihály Varga emphasised, the Hungarian state budget was stable and sound, the debt-to-GDP ratio was declining steadily, and the share of state securities held by non-residents was also falling. Negative yields seen at the latest action are expected to persist.

via kormany.hu and MTI; photo: Noémi Bruzák – MTI