2.9% yielding inflation linked Premium € Hungarian Government Bond (2021/Y)

If you are looking for a EUR denominated, medium-term investment vehicle linked to EU inflation rates, where repayment of the capital invested is guaranteed by the Hungarian state, then P€MAP (PRÉMIUM € Hungarian Government Bond) can be a good choice.

The interest basis of the P€MAP was re-priced 22th September. The current interest rate for the next 1 year is 2.9%(!) which is super high for such medium-term bond. Last year it was 2.2%, which is still market-beating. Especially if I compare it the the iShares € Inflation Linked Govt Bond UCITS ETF which yields -0.4% above inflation. The P€MAP gives you 1% premium above inflation.

The interest basis of the P€MAP series is re-priced every 12 months at a rate that equals the percentage value of the „Harmonised index of consumer prices -all items excluding tobacco”>0% (or 0%) in the last 3 months in the EU zone, before the re-pricing which happens 22th September every year.

Unfortunately it is available to buy if you own an account in at the Hungarian State Treasury. Any EU/non-EU citizen can open an account, but you have to walk into an agency office in-person with your documents for identification. You can start opening the account on their website.

https://webkincstar.allamkincstar.gov.hu/#/login

Just switch to English on the top-right corner, and click Registration. Please make sure, to check out the User Guide.

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