Zloty Struggles Against Most EMEA Peers Despite Gains For WIG20

The Zloty has pared its losses against the euro, with EUR/PLN last seen +103 pips at PLN4.7074. USD/PLN last changes hands -75 pips at PLN4.5786, consolidating below neutral levels. The Polish currency struggles against regional peers, with PLN/CZK and PLN/HUF both tracking lower, as the Zloty lags all its EMEA peers save for the ILS and TRY.

• The WIG 20 has added over 2% thus far and is poised to snap a four-day losing streak, which makes the recent decline look like a bull flag formation. Elsewhere in the V4 space, Czechia's PX is in the red, while Hungary's BUX trades ~1.6% higher.
• Richening impetus is evident in the local government bond space, with yields last seen 20.5-28.1bp lower across the curve. Benchmark 10-year yield sits at 6.78%, the lowest point since late September.
• The research desk of mBank flags the recent pullback in yields in a tweet and suggests that the government's "spending-cut offensive" seems to be bearing fruit. Last week Business Insider ran a source report noting that the MoF is preparing spending cuts to the tune of a few dozen billion PLN.