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Morgan Stanley Turns Bullish on Zloty Bonds With Well-Paid Risks

  • Goes overweight from market-weight, favoring 2023, 2025 notes
  • Selloff has pushed yields to highest versus Germany since 2014

Morgan Stanley says it’s time to start buying Polish government debt again.

The bank turned overweight from market-weight in zloty bonds on Tuesday, arguing investor concerns over government policies pushed valuations of the country’s bonds to attractive levels. Polish bonds maturing in 10 years and longer fell for the past three months, pushing the premium investors demand to hold the bonds over similar German debt to a two-year high last week.