The Czech final GDP will not gain as much attention

EMEA Daily

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Review

Poland sold 2-year government bonds with very good demand (bid to cover over 3). We remain positive on fiscally strong CEE sovereigns relative to PIIGS.
Yesterday didn’t offer too much by way of macro data but we note that Lithuania posted a larger-than-expected current account deficit, which is testament to the difficulties of rebalancing.

Preview

Hungarian inflation data will be the main macro event in the CEE today. The last reading was a significant upside surprise and should we see continued high inflation the Hungarian central bank may have to sound more hawkish.
The Czech final GDP will not gain as much attention. We are likely to see rather sluggish Q4 2009 growth, as has been the case in similar countries like Germany and Sweden.

Trading update

The solid demand for Polish sovereign debt underlines our case for long Polish and Czech government bonds. We find that PLN-denominated bonds may be a good substitute to Swedish or Norwegian bonds for those looking for FX exposure and a yield pick-up.

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Published On Thu, Mar 11 2010, 06:30 GMT

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Danske Bank A/S

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