By: The Quinnipiac University Economics Research Team, Niamh Savage
The dominant trend for the central eastern European interest rate index was that most countries ended with an increase in yields. Czechia ended the period with the largest increase with over a 20% change in bond yields. Slovakia saw the largest initial increase, but they ended the period with a decrease in their bond yields. Slovakia had the greatest variation with about 33% from peak to trough.
Source: Eurostat and own calculations. Daily EMU convergence criterion bond yields (i.e., central government 10-year bond yields)
Relative to their own historical trends, many of the countries teetered on the line of their lower historical bounds. Many of the bond yields increased at the end of the period, so the Czech, Hungarian, and Polish bond yields ended within their historical range. The Romanian and Slovakian bond rates ended outside of their historical range. As the bond yields continue to be below their historical range, there will be movement in the yields as they either return to their means or settle on new levels.
Source: Eurostat and own calculations. Daily EMU convergence criterion bond yields (i.e., central government 10-year bond yields). The center line is a rolling three-month average. The upper and lower boundaries are the average plus and average minus one standard deviation, respectively, for the same three-month period.