Hungary’s is the world’s 3rd worst-performing government bond

It seems that this year was particularly bad for bond investments, which took a huge toll on Hungarian government bonds as well. Only Peru’s and Chile’s government bonds performed worse than Hungary’s, but Europe was also affected.

According to Bloomberg, the countries whose bonds “topped the rankings of 46 markets around the world in 2021” were South Africa, China, Indonesia, India, and Croatia, which was an unexpected event for many investors.

Bloomberg wrote in a different index that emerging market bonds decreased 1.3% in value this year, while South Africa’s government bonds yielded an 8.7% return in 2021, despite the hardships caused by the coronavirus and its new variants.

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According to Andre de Silva, South Africa became the leading emerging market investment because it had one of the steepest growth curves, and South African bonds gained the most among them, even for currency investors.

Similar but more humble numbers characterise the others: “Chinese securities gained 5.6% in 2021, Indonesia’s climbed 5.2%, India’s rose 2.7%, and Croatia’s increased 1%”.