The WSJ blog is reporting high levels of demand for Central European government bonds from investors who are looking to improve on the yields available from German debt. This trend is benefiting Hungary, which sold USD 231m worth of government debt on 2018, 2019 and 2015 bonds. This beat its original target volume slightly, though the shortest-dated bond came up short in the auction. Yields on the 2025 bond was 5.01 percent two weeks ago but fell yesterday to 4.41 percent. The WSJ points out that the German 10-year bond is trading at roughly 1 percent, meaning that for those prepared to take the risk, serious profits are possible.
