Bond Markets Outlook

11 Decembrie 2009

RAIFFEISEN BANK S.A.

 

Highlights

� Poland - In spite of next week´s data releases, the global risk sentiment will remain the most important driver of yields and EUR/PLN. At the current level of EUR/PLN we still recommend buying Polish bonds.

� Hungary - We expect a minimal budget deficit overshoot for 2009, and a massive one for 2010. Parliamentary elections are due in April of next year, and the centre-right Fidesz will likely come away with a victory. High-ranked Fidesz politicians have talked about the need for a new budget, new policy measures and a new IMF agreement.

� Czech Republic - Next week the Czech National Bank will decide on interest rates. CNB board member Eva Zamrazilova said that there might be room for a further cut.

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The tricky lag LUCIAN CROITORU Adviser to the Governor - BANCA NAŢIONALĂ A ROMÂNIEI Lucian Croitoru, Adviser on monetary policy issues to the National Bank of Romania Governor, talks about the NBR’s next moves and explains why the decrease ofthe policy rate hasn’t been reflected into lower interest rates on bank loans. mai mult... The turnaround CRISTIAN SPORIS Secretar de Stat - MINISTERUL ECONOMIEI ŞI FINANŢELOR Cristian Sporis, Secretary of State at the Ministry of Public Finance, in charge with the national treasury and public debt, explains how the state managed to borrow money at the lowest costs in the last seven years and how it turned from a clear market taker into a player with a strong position on the market. mai mult...