Zloty Slips & POLGBs Gain Amid Court Law Debate

EUR/PLN operates +64 pips at PLN4.6934, with domestic focus falling on parliamentary debate on court reforms needed to secure access to EU recovery funds. From a technical standpoint, bulls set their sights on Dec 6 high of PLN4.7220. Conversely, A dip through Jan 4 low of PLN4.6573 would expose Dec 26/Jun 21 lows of PLN4.6270/62.

• POLGBs have edged higher and last trade 2.5-6.7bp richer across the curve. Benchmark 10-year yield has consolidated below the 6% mark, while the 2-Year/10-Year segment is back from inverted territory.
• Ryszard Terlecki, the leader of ruling party caucus in the lower house of parliament, suggested that the Sejm could vote on the court law required to unlock EU funds as soon as this Friday. The bill will have its second reading this afternoon, with opposition leaders set to meet this morning to discuss a common stance. Terlecki said he was hoping that the opposition will vote in favour of the bill, even as all of its amendments were rejected at committee level.
• NBP's Gabriela Maslowska said that the MPC is unlikely to raise interest rates any further, albeit the rate-hike cycle has not been formally ended and rate increases cannot be entirely ruled out. The next batch of NBP economic projections will be a key input while deciding on the likely timing of policy easing.