Bloomberg News

Zloty Slips to 2-Month Low, Polish Bonds Slump on German Sale

November 23, 2011

Nov. 23 (Bloomberg) -- Poland’s zloty slid to its weakest since September versus the euro and 10-year yields surged to a two-month high after Germany failed to raise the planned amount at auction today because of the region’s debt crisis.

Falling bonds lifted 10-year yields by 18 basis points, or 0.18 percentage point, to 6.02 percent by 4:59 p.m. in Warsaw, bond indexes compiled by Bloomberg show. The zloty depreciated 0.8 percent to 4.4960 per euro, the lowest since Sept. 23.

European stocks and bonds fell and the euro weakened after investors ordered 3.889 billion euros ($5.2 billion) of German securities due in 2022, short of the maximum target of 6 billion euros, fueling concern the sovereign-debt crisis is worsening.

“A eurozone recession is just round the corner and as such we shall shortly be publishing substantially reduced gross- domestic-product forecasts for central and eastern Europe,” Peter Attard Montalto, an economist at Nomura International Plc, wrote in an e-mail to clients today.

The zloty earlier today appreciated as much as 0.4 percent after dealers from three commercial banks said the central bank sold euros in the currency market.

--Editors: Linda Shen, Ash Kumar

To contact the reporter on this story: Krystof Chamonikolas in Prague at kchamonikola@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


Monsanto vs. GMO Haters
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus