Forint-denominated government bonds could significantly outperform peers in Poland and other developed markets in the next year despite Hungary's lower credit ratings, according to a quarterly Reuters poll of analysts. In the September 30-October 5 survey of 18 analysts, the 12-month median forecast for Hungary's 10-year benchmark bond yield was lowered to 2.98 percent from 3.53 percent in the previous poll. The consensus for the corresponding Polish paper rose 6 basis points to 3.39 percent.
The Polish yield could rise by about 45 basis points from current levels, while a rise in Hungary would be only about 10 basis points even though inflation is seen rising across Central Europe by next year from levels around zero.