PLN: Statistics Office Revises May Inflation Lower, Kotecki Sees Room For Easing

• The Dollar is still falling, new lows versus the EUR, GBP, CHF, SEK, CZK, SGD, PLN, CAD, MYR, KRW, NZD.
• Market participants will be looking at the USDJPY and Monday's gap down to 145.37, ahead of Friday's low that is situated at 144.83.

The 10-year BTP/Bund spread briefly printed below the 100bp handle for the first time since September 2021, with recent tightening momentum persisting even as European equities soften on the session.

• Bund futures have traded in a tight 27 tick range today, currently -2 ticks at 129.54. The 50.0% retracement of the Mar 11 - Apr 7 rally at 129.28 contained downside earlier, but a short-term bearish theme remains intact.
• Bund yields are ~1bp lower across the curve. Today’s 30-year Bund auction was digested smoothly.
• Portugal also sold bonds today, while Belgium and Latvia are holding 5-year syndications. The EFSF has sent an RFP for an upcoming transaction, likely early next week.
• German and Spanish April HICP confirmed flash estimates on an annual basis.
• ECB’s Nagel didn’t add too much to the near-term policy debate. Cipollone, Villeroy and Holzmann are scheduled to speak later today.