The April issue of Forbes investigates whether the new 2-year government security is a better investment than the popular inflation-indexed bonds. The winner is still the inflation-indexed bond with 4.05 interest which could even increase next summer.

Last week, the Government Debt Management Centre (ÁKK) has announced that they’re offering 2.5pc interest on the new 2-year government security. Since inflation is rising at least 2.5pc annually, the 2.5pc on the new 2-year bond, together with interest tax, is not the best investment.

As for the winners, interest on the Premium Government Bond is calculated as a sum of a variable interest base and the interest rate premium ( The 2.75 and 3.25pc premium on the previous series was so profitable that its trading was finished at the beginning of the year and a new series has been issued. The 3-year bond is called 2020/K, and the 5-year bond is called 2022/l. The interest rate premium is 3.55pc on the 3-year bond and an unsurpassable 4.05 on the 5-year security.

You can read more about the Hungarian government securities in English here.

Ce: bm


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