Oil falls, zloty weakens
Oil price declines may help stabilize debt. Today’s focus will be on central bank decision meetings, and the expected rate hike in the Czech Republic could potentially support the crown against the zloty.
Yesterday on the domestic stock market, index changes were limited with mixed results. On the domestic currency market, the zloty weakened slightly to about 4.241 from about 4.236.
The main event in the debt market was an auction where the Ministry of Finance sold bonds for about 12 bn PLN with strong demand of about 18.3 bn PLN. The demand-to-supply ratio was highest since February. The largest share of sales came from PS0731 bonds (about 4.44 bn PLN).
The Ministry of Finance sold additional bonds of series OK0129, NZ0331, DS0436, IZ0836, and NZ0936 for a total of 791 m PLN. After the auction, the finance ministry has financed about 59% of the loan needs planned for this year.
Domestic market rates fell by about 2 basis points in the first part of the day but later rose by about 4 basis points; on the long end, market rates fell by about 2 basis points. At the end of the session, the yield on 10‑year bonds was about 5.43%.
EURUSD fell to about 1.1585 from about 1.161
On international stock markets, changes were moderate, and the European session saw slight index gains. Market participants awaited the Fed’s rate decision and the new chair K. Warsha’s conference, as well as further developments in the Middle East. In anticipation of the Fed decision, the dollar gained slightly, but the range of changes was limited.
EURUSD fell to about 1.1585 from about 1.161. After significant declines in recent sessions, oil prices rebounded to about $80 from about $78. On the foreign bond market, there was a slight weakening before K. Warsha’s conference by about 2–3 basis points. At the end of the day, German 10‑year yields were at 2.93% and U.S. yields near 4.44%.
