POLAND: Sell-Side Desks Flag Positive Sentiment Around Today's POLGB Auction

Ahead of today's POLGB sale, Pekao and PKO remind that this will be the first auction after Moody's cut Poland's rating last Friday, with Pekao adding that it will be the first one since a notable correction in yields. They add that bonds have become 'more expensive, but sentiment in the market is better'. Meanwhile, PKO emphasise that both demand and yields at the auction relative to secondary market pricing will be important factors to watch. * Milllennium are quite upbeat about today's sale and note that 'with the improvement in global sentiment and a decline in oil prices, the auction will probably attract investor interest.' * ING remind that last week's sale, where maximum supply was reduced relative to the preliminary schedule, surprised with a relatively robust demand (bid/cover of 1.6x), despite an unfavourable external environment.