0830 GMT [Dow Jones] Declining Hungarian bond yields are a problem,
Commerzbank says, because they have started feeding through to the
Hungarian government's rhetoric. "It seems that each percentage point
[fall] reduces the government's willingness to enter into compromises
during the talks with the EU/IMF, which will start today," says the
bank. "Without external pressure, the Hungarian government is much
more self-confident about its latest reform measures. This raises the
problem that the distance between the two parties is likely to grow
again and that negotiations will take longer than expected."
Commerzbank thinks the current EUR/HUF trading range of 285.50 and
291.50 will hold for now, but if Hungary and the IMF cannot meet
halfway, EUR/HUF may edge higher again. EUR/HUF currently trades at
287.50.(alexandra.fletcher@dowjones.com)
Contact us in London. +44-20-7842-9464
Markettalk.eu@dowjones.com
(END) Dow Jones Newswires
July 17, 2012 04:30 ET (08:30 GMT)
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