FXStreet reported that BNY senior EMEA market strategist Geoff Yu sees Poland’s fiscal policy as a factor that could affect the appeal of its government bonds, as official data show nonresidents held 12% of domestically issued Treasury securities at the end of August.
The Oct. 21 FXStreet report said Polish bond holdings had fallen by half amid steeper euro-area yield curves and fiscal concerns. It did not give a comparison period or define the holdings measure. The Ministry of Finance’s figures provide a separate measure: nonresidents held PLN 201.6 billion in domestic Treasury securities at the end of August 2026. Their share was 11.8% at the end of December 2025.
BNY’s Oct. 1 regional strategy note described investor exposure to Central and Eastern European bond duration as limited. Comparing one-year implied yields with current annualized consumer price inflation, the bank found higher real rates in Poland, Czechia, Hungary and Romania than in the euro area. It also said energy subsidies were putting additional pressure on public finances, a concern BNY discussed in its earlier assessment of winter energy costs and Central European currencies.
BNY pointed to Hungary’s post-election bond rally as an example of how a policy shift can affect performance. The bank said Hungary’s 10-year yield fell nearly 250 basis points between late March and early July 2026. It associated the decline with promises of fiscal consolidation, prospects for euro entry and the possible release of European Union funds.
Yu’s reported argument links that Hungarian example to the potential for a change in Poland’s fiscal approach. FXStreet did not identify a specific Polish reform proposal or timetable. BNY’s public Oct. 1 note provides broader regional context, while the Poland-specific view and reported halving of bond holdings come from FXStreet’s account.
