Hungary may be benefited more on a relative basis

European Central Bank's QE extension will be supporting the CEE bonds, but it might help Hungary more on a comparative basis, when idiosyncratic risk prevails elsewhere.

HUF assets' risk premium is expected to be reduced further by the efforts of NBH to make local banks buy more government bonds, by which there would be lowering in the foreign ownership and Hungary's external vulnerabilities would be increased.

"These efforts are likely to reduce the HUF's beta to global risk appetite. Although more unconventional policy measures by the NBH are likely to weigh on the HUF in the near term, its medium-term stability stands in contrast to the PLN, Poland's the central bank is expected to cut 75bp over the coming months", says Barclays in a research note.