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2Y Yield Testing 3.65% Resistance

POLAND
  • Poland 2Y yield has been retracing sharply higher in the past two weeks as market has been ricing in further hikes following recent ‘hawkish’ comments from NBP policymakers.
  • As we previously mentioned, the vulnerability of the PLN due to Russia-related tensions also puts Polish policymakers in a ‘difficult’ position as further depreciation in the zloty keeps supporting inflation expectations.
  • The 2Y yieldbroke above the 3.50% level yesterday and is currently testing its 3.65% resistance.
  • A break above that level would open the door for a move up to 4%

Source: Bloomberg

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