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10Y Yield Testing 4% Resistance

POLAND
  • Poland 10Y yield has been rising in the past month amid growing inflation concerns with investors reviewing the terminal rate to the upside as central banks in the CEE region are now expected to prolong their tightening cycle.
  • The 10Y is currently flirting with the key 4% level; a break above that level would open the door for a move up to 4.15% (April 2014 high).
  • On the downside, support to watch stands at 4.83%.
  • As a reminder, inflation continued to surprise positively last week and accelerated to 8.6% in December (vs. 8.2% exp.), up from 7.8% the previous month.


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