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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EMERGING MARKETS
- While growing concerns over inflation risks led to a significant rise in the bond market volatility in Poland and Hungary in the middle of May, the market took the opportunity to pile into LT Poland and Hungary bonds in the past week, which led to a sharp consolidation in the 10Y yield.
- Hungary 10Y yield is now back to its 'pre-selloff' levels, trading slightly below the 2.90% level; supports to watch on the downside stands at 2.78% (50D SMA) and 2.75%.
- Poland retraced back to a low of 1.72% yesterday before starting to shoot off again; the recent rise was triggered by the NBP rejection of bids at QE auction yesterday. The NBP bought 2bn PLN at its QE auction, which was less than half of the maximum amount it offered to purchase (5bn PLN) despite receiving 6.8bn PLN in demand according to Bloomberg.
- Volatility has been much smoother in the Czech bond market as it did not experience any selloff in the past two weeks; LT bonds have also received strong support in the past week with the 10Y yield down 10bps to 1.68% (100D SMA). Next support to watch on the downside stands at 1.60%.
- As a reminder, the CEE region currently offers the lowest 10Y real yields among the EM world; with Poland (-2.41%) being at the second from the bottom of the 'League' after China 10Y real yield (adjusted by PPI).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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