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Inflation Seen Rising to New Cycle High

POLAND
  • The PiS ruling party are currently running through options to unblock KPO recovery funds, according to Rzeczpospolita, with the current government seeing the persistent blockage as working in favour of Donald Tusk's opposition. The piece writes that the government are watching the situation in Hungary closely, with Budapest yielding to a number of EU demands to unlock recovery monies.
  • Parkiet cover the mechanics of the Polish bond market today, writing that Polish government bonds are more sensitive to interest rate changes due to the increased supply of floating-rate bonds in recent years. Additionally, the average tenor of Polish debt has shortened, meaning Poland pays higher interest sooner.
  • The finance ministry are today to update their bond supply plans for November, while markets watch October prelim CPI closely. CPI is seen accelerating further to hit 17.8% Y/Y.

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