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10Y Real Yield: Soaring Inflation Sends Poland 10Y Real Yield To Nearly -4%

  • The chart below ranks the 10Y real yields among the most liquid EM economies, adjusted by CPI inflation.
  • This morning, the positive surprise in Polish CPI inflation (+6.8% YoY, highest level in 20years) sent the 10Y real yield to nearly -4%.
  • Poland currently offers the second lowest yield among the EM world after China (PPI-adj. real yield of -7.7%).
  • CEE region still remains at the bottom of the 'League' despite the rally in LT bond yields in the past two months as inflation continues to surprise positively. Inflationary pressures are expected to remain elevated until at least the end of this year.
  • South Africa remains at the top of the League, currently offering a 10Y real yield of 5.2%, which has strongly supported the ZAR in the past year (in addition to the increase in Current Account surpluses).

Source: Bloomberg/MNI

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