Both Czech and Polish PMI better than expected
Hungarian yields continue to rise
On Friday, the zloty and the koruna barely changed while the Hungarian forint and government bonds remained under pressure. Rising yields of US government bonds may be responsible for recent lacklustre demand for the Central European bonds; in the course of the past week, the yield of 10Y Hungarian government bonds had risen by 50 basis points. Moreover, the recommendation of the European Commission to lift the Excessive Deficit Procedure against Hungary may also have added pressure on the country´s government bonds. Despite losses, the forint has remained seated well below the EUR/HUF 300 level.
Click here to read the full report: FX Daily
KBC