Central European Daily

A lower than expected Polish PMI did not affect the market. The zloty hovered yesterday in a narrow range around 4.14 EUR/PLN and government bond yields fell along the whole yield curve around 2 to 8 basis points. Yield drops were striking in Hungary, where the yield of a 10 year government bond fell by 12 basis points and the 3 year bond yield fell by 22 basis points, a record low. Central European recovery has helped regional bonds to recover in past months and nowadays forthcoming ECB meeting, on which is ECB expected to further loosen monetary condition, supports further yield drop.