POLAND: Moody's Rating Review Takes Focus On Otherwise Quiet Friday

Thedeen on the economic outlook: Positive real wages should start to support consumption going forward, but we think high uncertainty has caused households to save, rather than consume, so far this year.

• Åsa Olli Segendorf, Head of the Monetary Policy, highlights that households are less pessimistic on their own economic situation than earlier this year.

• The German Bund and wider EGBs are extending some gains Today, initial bid started post Bund Cash Open, some Desks have favoured fading some of the sell off as Bund got close to the 2.80% level of late and 113.00 in the Buxl.
• There's likely been some short cover, profit taking with PMIs Tomorrow and Powell on Friday.
• Still, while the Volumes has been picking up in the past few minutes as Futures test new highs, the earlier lower Volume suggest that Real Money may have been on the sidelines and the driving flow has been more from Fast Money (Locals, Prop).
• Next resistance in Bund comes at 129.62 next.

Thedeen on inflation: Other components that are not so volatile (than e.g. package holidays or car rental prices) have been broadly in line with projections. 

• The Riksbank’s view is that underlying inflation is still on its way towards 2%.
• Price plans are still somewhat higher than normal.
• There is a risk the uptick in inflation could still impact inflation expectations.