Halister News

(Bloomberg) -- Prospect of Fed rate increases is among factors that balances the dovish local central bank and limited bond supply, Krzysztof Izdebski, fixed-income fund manager at Union Investment mutual fund says in emailed comments.

• 10-year zloty bonds fell Thursday for the first time in three days, pushing the yield higher by 4bps to 3.35%
  • “Debt is weighed down by prospects of a rate hike in the U.S. and market uncertainty linked to Donald Trump,” Izdebski says
  • What’s shielding the market from greater rises in yields is the prospect of limited bond supply in coming months, Poland’s dovish central bank and foreign investor interest in local debt, he adds
• NOTE: Poland sold 3b zloty of bonds at auction, with investor demand at 6.86b zloty
  • Polish finance ministry has already financed 63% of its 2017 borrowing needs, and has flagged that debt supply in coming months may be limited
• Local 5- year bond yield trades +3bps at 2.780%, while 2-year notes trade -3bps at 1.916%, closing in on auction level

To contact the reporter on this story: Adrian Krajewski in Warsaw at akrajewski4@bloomberg.net To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net Anil Varma