CE bond markets join global sell-off. The Polish market is facing the biggest, though domestic eco data disappoint. Global sell-off in core bond and equity markets hit also Central Europe. Regional bond markets, previously benefiting from heavy foreign portfolio inflows, suffered the largest losses. As outflows replaced inflows, prices of regional sovereign bonds began to drop while their yields jumped higher. The biggest rise in sovereign bond yields happened in Poland where the stock of domestically issued bonds in the hands of non-residents is particularly high. The (global) sell-off has shifted the government bond yield curve higher by more than 20 bps up.
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KBC