The yields on Polish government bonds surged the most since October 2008 after Federal Reserve Chairman Ben S. Bernanke said the U.S. central bank may curb stimulus this year that helped feed a global rally in securities.
The yield on Poland’s 10-year notes jumped 33 basis points to 4.19 percent at 1:45 p.m. in Warsaw, the highest since November last year. The premium over similar German bonds rose 22 basis points to a two-month high of 252 basis points. The zloty weakened 1.1 percent to 4.3097 against the euro, after falling as much as 2 percent earlier today, the deepest slump in 19 months.
The Fed may taper its monthly purchases of $85 billion in assets later this year and halt them around mid-2014 as long as the world’s largest economy performs in line with its projections, Bernanke said yesterday.
Poland may abstain from holding bond sales in July and August as it has met 88 percent of its this year’s borrowing needs of 145 billion zloty, deputy Finance Minister Wojciech Kowalczyk said in Warsaw today.
To contact the reporter on this story: Maciej Onoszko in Warsaw at firstname.lastname@example.org
To contact the editor responsible for this story: Wojciech Moskwa at email@example.com