Page 54 - CE Outlook Regions 2024

aggressively from 18% to 11.5% in November. The yield on the 10-year bond came down from over 9% at the beginning of the year to 6.5% in December, leading to a 25% increase in bond prices.
As disinflation is likely to lose momentum in mid-2024, the outstanding performance of Hungarian bonds is unlikely to be repeated. However, local bonds still carry a high-risk premium, even above that of Romanian bonds. The possible improvement with the EU in rule of law issues and improving economic conditions should help Hungarian assets.
Local stocks did well despite the unfavourable macro and regulatory environment, resilient to high energy prices, rising inflation, and windfall taxes. The benchmark BUX index has risen some 40% in 2023 to historic highs, above 61,000 points, two weeks before the end of the year. OTP, with the highest weight in the BUX basket, rose more than 50%, Magyar Telekom shares jumped 100% after years of disappointing investors. The BUX was the fifth best performing global exchange in dollar terms.
5.4 Markets - Slovakia
Slovakia raised close to €0.5bn in the last bond auction in 2023 on November 20. Overall, it raised €10.4bn in 2023, which is the highest annual sum since 2020, when the COVID-19 pandemic plunged the Slovak economy into recession.
The Debt and Liquidity Management Agency (Ardal) sold bonds
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