Quiet trading was the norm not only today but throughout the week, reflecting the unperturbed market sentiment of investors worldwide. Forint quotes vs. the euro remained within a narrow range between 265 and 268, with the rate settling around 266 today. The US dollar and the Swiss franc were traded around 193.1 and 182.4 late afternoon CET, respectively.

Lower than expected February inflation, together with a statement by a member of the rate-setting Monetary Council have kept expectations for an interest rate cut in March alive. The past week has witnessed a continued decline of government bond yields, partly due to rate cut expectations and partly to the supportive result of bond auctions yesterday.

A relatively benign external environment has also contributed to the decline of yields, which fell 10 to 20 bp from last Friday. The 10-year benchmark dropped to 7.22% - a milestone 4-month low for bonds while the national currency is also performing better than in recent months. "

Source: Portfolio Online Financial Journal