Investors avoid Polish government bonds
23:25
There has been no such high profitability of Polish treasury bonds for years. The market is betting that the government will borrow more and more to fill the gaps after falling tax revenues and rising budget spending. As a result, the risk premium demanded by investors today has grown to levels not seen at least since the start of the pandemic.
The profitability of ten-year treasury bonds is already over 6.2 percent, the highest since 2011. And a year ago it was less than 1.5 percent. It is even worse in the case of five-year papers, because the profitability there already reaches 6.8 percent, which the market has not seen since the end of 2008, i.e. the time of the collapse of Lehman Brothers.
Such a large increase in profitability means that the prices of Polish bonds that investors are willing to pay are falling head over heels, at a pace unheard of since the global financial crisis and the so-called the debt crisis in the euro area over a decade ago.
