EUR/PLN Prints New Multi-Month Lows, POLGBs Advance

EUR/PLN trades on a slightly heavier footing and last changes hands -42 pips at PLN4.5947. The rate is at its worst levels in almost a year, with bears looking for a breach of Jun 9, 2022 low of PLN4.5781. Conversely, bulls look for recovery towards the 20-EMA at PLN4.6412.

• POLGBs are bid across the curve, with 5s outperforming, as yields sit 7.7-10.8bp lower. The 2-year/10-year spread has returned into inverted territory this week. Meanwhile, 10-year POLGB/Bund yield differential has tightened to narrowest levels since late January.
• Local equity markets have weakened, with benchmark WIG20 index sitting ~0.8% lower on the day. While it has given away the entirety of yesterday's gains, it remains fairly close to recent cyclical highs.