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PLN/JPY and Poland 10Y Continue Their Bearish Retracement

POLAND
  • PLNJPY breaking through its 200-DMA (support) at 27.87; PLN has weakened over the past 2 weeks as uncertainty over the duration of the lockdowns in Europe has favoured traditional havens including JPY.

Source: Bloomberg/MNI


  • Speculation that some CEE CBs will start hiking rates in H2 has been fading, and therefore has led to some downside retracement on the 10Y yield.
  • The stabilisation of Polish inflation has also been supporting government bonds in recent weeks with the 10Y down 15bps in the past 3 weeks. Next inflation data is coming up on March 31st.


Source: Bloomberg/MNI


MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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