Hungary’s three-year government bond yields fell for a second day as Bank of America Corp. said the central bank may cut the European Union’s highest benchmark rate by two percentage points by 2013.
The gains in the benchmark notes maturing in 2015 lowered yields two basis points, or 0.02 percentage point, to 7.502 percent. The forint was little changed at 284.94 per euro by 11:53 a.m. in Budapest.
The Magyar Nemzeti Bank may reduce its 7 percent benchmark rate by 50 basis points this year and another 150 basis points in 2013 after lowering its economic growth projections, Mai Doan, a London-based economist at the bank, wrote in a research report today.
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