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Local Bonds Better Bid ahead of CPI; EUR Sentiment Dominates EUR/PLN

POLAND
  • Local bonds better bid across the curve at the start of the week, despite lower volumes.
  • Offshore interest noted in 10Y GB's, with 1.25 level looming.
  • Sell side says market is looking better paid in the long-end, with additional paying emerging in 5y5y's.
  • EUR/PLN diverges from HUF ahead of today's CPI as European lockdowns roil sentiment.
  • CPI expected to print 0.0% MoM & 3.0% YoY and should vindicate the NBP's cautious approach with core remaining persistently high at 4.2%.
  • Spot trading at short-term resistance at 4.4440, with a move higher opening up 4.4509-4.4550.
  • EUR sentiment likely to continue to dominate price action.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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