Interest in treasury bonds is not weakening. After a record June, the results of July also look promising. The Ministry of Finance will receive a large loan.
In May, bonds were sold for a total of PLN 2.353 billion, and in June this amount jumped to PLN 14 billion. According to the National Securities Depository, July will also be very successful for the government in this respect. It turns out that this month this amount may exceed 10 billion zł. The result may not be as impressive as in June, but the data for the previous month should be viewed a little differently.
The jump in June is also due to the fact that holders of other bonds decided to exchange them for much more profitable “inflationary” securities. It was in June that the Ministry of Finance issued new bonds and updated some of the existing ones. The political publicity provided by the contributions of Prime Minister Mateusz Morawiecki and other politicians also helped.
High inflation encourages buying bonds
The most important factor influencing the popularity of Treasury bonds is inflation, which currently stands at as much as 15.5%. and the answer to it, that is, an increase in interest rates. The current level is 6.5 percent. it also affects the interest rate on treasury bonds.
Such a high interest in bonds means that the Ministry of Finance has received a loan from citizens in the amount of more than PLN 10 billion. This is important because, if done right, it can help keep inflation in check. However, if the funds that the Poles invested in bonds immediately return to the market, this could be pro-inflationary.
Source: Wprost
