Polish Yields Jump to 8-Week High After Wage Data: Warsaw Mover Yields on Poland’s 10-year government bonds increased for a sixth day as July wages rose the most since February, adding to signs of recovery in the European Union’s largest eastern economy. The yields on the securities jumped nine basis points, or 0.09 percentage point, to 4.44 percent at 3:51 p.m. in Warsaw, the highest since June 24. The zloty declined 0.4 percent to 4.2486 against the euro, curbing its quarter-to-date gain to 1.8 percent, still the best performance among emerging-market currencies tracked by Bloomberg. Poland’s corporate wages rose 3.5 percent in the 12 months to July, beating a 2.8 percent median estimate in Bloomberg survey of 28 economists. The Narodowy Bank Polski adopted a neutral view on monetary policy after lowering its benchmark rate to a record 2.5 percent on July 3, with Governor Marek Belka predicting gradual acceleration of the economy. “Today’s release is further evidence of a rebound in the Polish economy,” BRE Bank SA economists, led by Ernest Pytlarczyk, wrote in a note. “The ongoing recovery will strengthen expectations of interest rate hikes and steepen the yield curve.” Inflation and gross domestic product grew more than anticipated, data showed last week, after the economy expanded at the slowest pace in four years in the first quarter. Consumer prices (POCPIYOY) jumped to 1.1 percent in the 12 months to July from record-low 0.2 percent in June, while second-quarter GDP (POGDYOY) increased 0.8 percent from last year, compared with 0.5 percent in the first three months of the year. The yields on two-year bonds rose three basis points to a seven-week high 3.10 percent. The spread between 10-year and two-year bonds widened to 131 basis points, or 1.31 percentage point, the most in two weeks.
Posted on: Mon, 19 Aug 2013 14:42:35 +0000
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