Government bond yields across Poland and global markets climbed sharply on Thursday as Brent crude oil prices approached the $100 per barrel threshold.
The surge in energy costs has reignited investor concerns about persistent inflation, triggering a broad repricing in fixed-income markets and exerting downward pressure on equity indices.
Despite the macroeconomic headwinds, the Polish zloty demonstrated resilience, maintaining stability against the euro with minimal deviation from recent trading levels.
The spike in oil prices has forced investors to reassess the inflation outlook, leading to a rapid sell-off in bonds as yields rose to reflect higher expected returns.
This shift in sentiment has also spilled over into equity markets, where rising borrowing costs and inflationary pressures have weighed on valuations.
The divergence between the bond market's volatility and the zloty's stability suggests that investors are currently prioritizing currency stability over immediate inflation hedging in the Polish context.