Central European Daily

Yesterday, better than expected regional PMIs were not able to overweigh tensions stemming from escalation of the Ukrainian crisis. While the Czech koruna is at least for the time being relatively stable, the Hungarian forint and the Polish zloty suffered yesterday substantial losses. The forint lost 1%, nevertheless it still remains off its lows from the beginning of February. The negative sentiment also affected regional bond markets. While only Czech government bonds remained stable, Hungarian government yields (10Y) bond rose by 9 basis points and Polish 10Y bond yields moved higher by 4 bps.