License to Spend in Poland as ECB and Fed Keep Investors Easy
- Bonds rally even amid campaign vows of more spending, benefits
- Assets supported by Poland's strong fundamentals, Barings says
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It’s proving tough to damp investor confidence in Poland.
With its promises to boost social spending, reduce the retirement age and clobber banks with special taxes, the party leading in pre-election polls has barely made a dent in the bond market. In fact, as this month’s election approaches, investors have reduced the extra yield on Polish bonds to 2.1 percentage points over German bunds from 2.6 in June.