Polish Yields Fall to Two-Week Low as Output Poised to ContractPiotr Skolimowski
Polish bond yields fell before a report that may show a contraction in industrial output extended last month, backing the case for interest rate cuts.
The yield on five-year notes slid to a two-week low as output slumped 3 percent from a year earlier, according to the median forecast in a Bloomberg survey of 26 economists. Data is scheduled for release at 2 p.m. Poland’s central bank has slashed rates four times since November to stimulate the economy.
“We are not looking for a positive surprise,” Bank Pekao SA economists including Marcin Mrowiec said in e-mailed report. “The yield curve is pricing in an economic slowdown and a possible reaction from the central bank.”
The yield on notes maturing in April 2018 fell four basis points, or 0.04 percentage point, to 3.515 percent at 1:05 p.m. in Warsaw, its lowest level since Feb. 6. The zloty gained 0.1 percent to 4.1809 per euro, its second day of advances.