Polish 10-year bond yields fell for a second day, reaching a record low, and the zloty advanced against the euro.
The yield on notes due in October 2023 fell four basis points to 3.83 percent at 12:31 p.m. in Warsaw. The zloty added as much as 0.2 percent against the single European currency before trading up less than 0.1 percent to 4.0721.
As central banks from the U.S. to Japan and the euro area pledge to keep borrowing costs low to support their economies, investors are buying emerging-market bonds in search of higher returns. The yield on Poland’s 10-year bond in zloty is poised for its biggest annual retreat in a decade while the country’s cost of borrowing in dollars is headed for a record decline this year, according to data compiled by Bloomberg.
“Actions from major global central banks maintain a positive backdrop for Polish bonds,” Rafal Benecki, chief economist for Poland at ING Groep NV in Warsaw, wrote in an e-mailed note. “The zloty has a chance to appreciate to 4.05 from the current level.”