Hungary's 10-year forint yield has compressed more than 200 basis points from its March peak, with Debt Management Agency CEO Gergely Tardos projecting an additional 150 to 250 basis point decline toward a 4 percent target.

Tardos made the statement Friday at a forum in Eger, eastern Hungary. The yield now sits around 5.5 percent—already below Poland's comparable rate—following Prime Minister Peter Magyar's April election win and his administration's stated commitment to euro adoption.

Under former Premier Viktor Orban, Hungary's 10-year borrowing costs traded above 7 percent, closer to Romania's levels. The shift reflects a fundamental repricing of Hungary's risk premium in global bond markets.

Tardos said euro-area membership should insulate Hungary from external shocks that disproportionately impact smaller emerging economies. He added that domestic yields could fall further even if core rates rise, suggesting the convergence trade will persist independent of broader rate movements.

The Debt Management Agency has reported increased participation from long-horizon institutional investors, including sovereign wealth funds. This composition change—toward what Tardos called "stickier capital"—marks a shift in how global markets price Hungarian credit risk.