POLAND: POLGB Yields Marginally Mixed Ahead Of Today's Debt Auction
POLGBs are marginally mixed, as the space digests latest rounds of NBP speak and energy market developments, with the Finance Ministry due to sell bonds later today. 10-year POLGB yield hovers just above 6.10%, having pulled back from cyclical highs slightly north of 6.50%, where it peaked on September 15. * Crude oil prices are stable to marginally higher, with Brent holding below $100/bbl for now, but the space remains sensitive to headlines documenting any fresh skirmishes around key waterways in the Middle East. Meanwhile, market participants await updates on the outcome of talks held on the sidelines of the UNGA. US President Trump said that the latest round of talks with Iran was 'very good' but failed to offer any details. * The tone of rhetoric from MPC's Kotecki turned more hawkish, as the official signalled that the central bank may be forced to start raising rates, especially if its November projection shows a persistent inflation target overshoot. He explicitly said that 'we will likely raise the cost of money in the economy' and 'the Council cannot wait'. Confronted with the fact that Governor Glapiski would prefer to stabilise rates, Kotecki admitted that each rate-se
POLGBs are marginally mixed, as the space digests latest rounds of NBP speak and energy market developments, with the Finance Ministry due to sell bonds later today. 50%, where it peaked on September 15. * Crude oil prices are stable to marginally higher, with Brent holding below $100/bbl for now, but the space remains sensitive to headlines documenting any fresh skirmishes around key waterways in the Middle East. Meanwhile, market participants await updates on the outcome of talks held on the sidelines of the UNGA.
US President Trump said that the latest round of talks with Iran was 'very good' but failed to offer any details. * The tone of rhetoric from MPC's Kotecki turned more hawkish, as the official signalled that the central bank may be forced to start raising rates, especially if its November projection shows a persistent inflation target overshoot. He explicitly said that 'we will likely raise the cost of money in the economy' and 'the Council cannot wait'. Confronted with the fact that Governor Glapiski would prefer to stabilise rates, Kotecki admitted that each rate-setter voices their own independent view.
* As a reminder, the Governor guided earlier this month that the central bank would likely leave interest rates unchanged through the end of this year, and possibly through mid-2027, but would not hesitate to change course if needed. Comments from other MPC members suggested that the chief concern is about the energy shock becoming entrenched, as domestic demand is not seen as running too hot. * On the supply front, the Finance Ministry is looking to sell PLN7bn-12bn of debt across six POLGB series at today's auction.
The size of the auction matches the one in preliminary issuance schedule, following a decision to downsize of the previous sale, which may have artificially inflated demand metrics. 25% fixed-rate bonds (DS0436). 5bn of quasi-government bonds (FPC0229, FPC0231, FPC0931, FPC0332 and FPC0235) tomorrow.