Hungary’s announcement follows a comparable announcement by Nigeria which last week become only the second nation after South Korea to sell yuan-denominated debt in China’s domestic market as it seeks to cut borrowing costs while plugging a record record budget deficit
from Zero Hedge:
Submitted by Mike “Mish” Shedlock
Hungary has become the first Eastern European country to issue a yuan-denominated sovereign bond.
The deal that shows how currying favor with China may be a more important driver for the market than funding.
Reader Steve who sent me the story commented on Hungarian mortgages denominated in Swiss Francs only to see the Franc jump over 20% in value overnight.
“Pretty clever guys!”, said Steve.
Anyone think this is a good idea?
The Wall Street Journal reports Hungary to Issue Dim-Sum Bond as It Seeks to Curry Favor With China.
Hungary priced the three-year bond at a yield of…
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