January 03, 2014 | Cbonds
The Polish zloty may depreciate against the stronger US dollar, but should stay stable against the euro, while T-bonds' yields are climbing somewhat ahead of next week's debt auction and the Monetary Policy Council decision, local players told PAP.
"The zloty may depreciate towards USD/PLN 3.1" as the US currency is gaining, but should stay "rather stable against the euro in the range of 4.15-4.17," BPH Bank FX dealer Andrzej Krzeminski said suggesting that foreign markets are likely to be in the center of attention.
On the debt market, investors' eyes will be fixed on the domestic developments next week, including a debt auction slated for Thursday and the rate council's decision to be announced on Wednesday, PKO BP bond trader Maciej Popiel told PAP.
"The results of the auction will show if there is interest in debt papers at such yields," Popiel said. "At the moment, the prices are falling, adjusting to the situation on the core markets, where [yields on] 10Y Bunds are approaching 2%."
Poland will offer PLN 3.0-6.0 bln in OK0716/PS0718/DS1023/WZ0124 T-bonds during Thursday's auction.
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