Bank of America economist Kevin Doan said the new Hungarian government is moving swiftly to meet euro‑zone criteria, a development that should keep the country’s bond rally alive. The move signals a tightening of fiscal discipline and a step toward deeper European integration.

Hungary’s bond market has already surged, with yields falling sharply after the government announced reforms aimed at aligning with EU standards. Doan noted that the momentum could sustain the steep rally, as investors anticipate lower borrowing costs once Hungary adopts the euro.

The potential euro entry carries weight for European investors, as a lower risk premium on Hungarian debt could spill over to other emerging euro‑zone candidates. For portfolio managers, the outlook suggests a narrowing spread between Hungarian bonds and benchmark euro‑denominated securities.

Overall, the swift policy shift positions Hungary as a more attractive debt issuer, likely prompting further inflows into its bond market and reinforcing the narrative that integration drives yield compression.