HUNGARY: LNG Supply Deal With Engie Follows Agreement With Shell

• German 10yr Yield is leading, up 1.31% vs 0.80% in US Tnotes and {gb} 1.1% for the UK 10s.
• While the US Tnotes/Bund spread is 1bps wider, it is worth keeping an eye on the price action from here.
• The next Psychological level are at 145.00 and 140.00bps, the 137.7bps, a double bottom (March and April), will be the one to watch.

Austrian HICP inflation jumped four tenths in August to 4.1% Y/Y, a third consecutive acceleration the joint highest rate since January 2024. It came with monthly HICP inflation of 0.3% M/M.

• National CPI (non-HICP) accelerated in a similar fashion, from 3.7% to 4.1% Y/Y.
• Sticking to the CPI details, the press release notes:
• "Almost all expenditure groups in the basket of goods contributed to this increase: Energy showed a strong growth of 5.9%, following 4.2% in July, as fuels had a less dampening effect on prices than recently and also electricity prices continued to rise", the statistics office comments.
• "Services resumed to have the greatest impact on inflation, rising by 4.7%, followed by food, tobacco and alcohol, whose prices rose by 5.0%. The so-called core inflation, which covers the aggregates industrial goods and services, amounted to 3.8%, following 3.4% in July"
• For reference, Austria represents 3.4% of the overall 2025 Eurozone HICP basket.

A flurry of resignsations from senior leadership positions within the governing Liberal Democratic Party (LDP) have followed what is reported to have been a raucous internal party meeting this afternoon. Secretary-General of the governing Liberal Democratic Party (LDP), Hiroshi Moriyama, has said that he will stand down from his position in the wake of the party's poor performance in July elections to the upper house of the National Diet. Mainichi reports, "There is a strong view within the party that if Moriyama resigns, the administration's operations will come to a standstill", given that the gov't does not hold a majority in either chamber of parliament and the Sec-Gen was seen as a key interlocutor with the opposition.

• Following Moriyama's resignation, Kyodo News reports that Acting Chair of the LDP Policy Research Council Itsunori Onodera and Acting Chair of the LDP General Council Shunichi Suzuki have each offered their resignations as well.
• The meeting saw the presentation of a report into what went wrong in the July election, in which the LDP and its Komeito coalition partners lost their majority in the House of Councillors.
• It remains to be seen whether the resignations prove a sufficient sacrifice to keep PM Shigeru Ishiba in office. Ishiba said to lawmakers during the meeting that "I am not attached to my position. I have no intention of clinging to it at all." However, he added, "I will show the way forward for the LDP. That is my responsibility, and I will fulfill that, not shirk my responsibility, and make a proper decision when the time is right." Ishiba gave no sign of when this time might be, with the comments seemingly indicating his knowledge that he is on thin ice, but also that he will seek to remain LDP president and PM.
• Next major hurdle for PM comes on 8 September, when the LDP faces an internal deadline on whether to hold an early presidential election.