BUDAPEST/WARSAW: Central European government bond prices tracked euro zone peers lower on Wednesday in a broadly stable market, while the zloty recouped part of the previous day's losses as traders anticipated Poland's central bank will hold interest rates.
The region's other currencies also steadied after losses on Tuesday, as did its share markets as oil futures recovered from one-month lows.
The zloty firmed 0.2 percent against the euro to 4.257 by 1016 GMT, still well away from a multi-month high of 4.2276 hit on Monday.
All 16 analysts in a Reuters poll projected the Polish central bank will keep its 1.5 percent main interest rate on hold.
Polish consumer prices fell 0.9 percent year on year in March, which might favour following the example of Hungary's central bank which resumed its interest rate cuts last month.
But the Polish economy is growing healthily and the central bank is also factoring in policy and credit rating risks and jitters in emerging markets, analysts said.
Most rate-setters were appointed by the new government that took office in the autumn and, while zloty forward rate agreements (FRAs) still price in expectations for lower rates, most analysts believe the bank's next move will be a hike next year.
Poland's 10-year government bond yield rose 1 basis point to 2.87 percent.
Hungary's corresponding yield rose by 3 basis points from Tuesday's fixing to 3.05 percent, and the forint was flat.
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