Zloty Trims Gains, Local Players Prepare For Wednesday's CPI Report

EUR/PLN has clawed back some of its earlier losses, even as local headline flow has remained subdued. The rate last changes hands at PLN4.7752, down 112 pips on the day, after bottoming out at PLN4.7605.

• POLGBs have now given away most of their initial gains, with yields last seen +0.3bp to -1.6bp across the curve. The space may have come under some pressure on the back of a spillover from the upticks registered by U.S. Tsy yields in reaction to U.S. CPI data.
• The focus in Poland turns to local January CPI figures, due for release tomorrow. The forecast range in a Bloomberg poll is +16.5-18.9% Y/Y, with a median estimate of +17.6% Y/Y. Most analysts and the NBP expect a temporary spike in January/February before a disinflationary impulse materialises after Q1.