Zloty Slips & POLGB Yields Edge Higher With Core CPI Eyed

EUR/PLN changes hands +60 pips at PLN4.6998, with the Zloty trading on the defensive ahead of the publication of core CPI reading for December. Topside technical focus falls on Dec 6 high of PLN4.7220, while bears set their sights on Jan 4 low of PLN4.6573, followed by Dec 26/Jun 21 lows of PLN4.6270/62.

• Local-currency government bonds have cheapened, with yields last 9.4-11.8bp higher across the curve. The yield on benchmark 10-year bond has climbed back above the 6% mark after showing below there last week.
• Prime Minister Morawiecki hinted that Poland could file a formal request for the payout of EU recovery funds within days, as it continues to work on court and energy legislation needed to meet the milestones for unlocking the money.
• Poland's core CPI inflation for December will cross the wires later today. Most analysts call for a +11.5-11.6% Y/Y reading after headline inflation slowed to +16.6% Y/Y. The continued push higher in core inflation has been a headache for the NBP's rate-setting panel.