Bloomberg News

Polish Yields Drop 4th Day as Slowing Growth May Spur Rate Cuts

November 29, 2012

Poland’s 10-year bond yields fell to a record low before a report tomorrow that may show economic growth slowed to its weakest pace in three years, boosting expectations for more interest-rate cuts.

Yields on October 2023 notes slid one basis point, or 0.01 percentage point, to 4.09 percent by 5:12 p.m. in Warsaw. The yield has declined every day this week by a total of 15 basis points. The zloty gained 0.3 percent to 4.0895 per euro.

Growth in the European Union’s biggest eastern economy slowed to a three-year low of 1.8 percent in the third quarter, the statistics office will say tomorrow, according to a median estimate of 35 analysts surveyed by Bloomberg. Policy makers cut interest rates this month and signaled more may come as the euro area, Poland’s biggest trading partner, fell into a second recession in three years.

“The market is starting to price in deeper rate cuts in the cycle in anticipation of weaker data,” Bank Pekao SA (PEO) economists led by Marcin Mrowiec in Warsaw wrote in an e-mailed note to clients.

To contact the reporter on this story: Piotr Skolimowski in Warsaw at

To contact the editor responsible for this story: Gavin Serkin at

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