Poland canceled a bond swap tender and the Czech Republic slashed the size of a planned auction for Wednesday as the Iran war roiled global markets, sending regional yields surging, debt managers said on Monday.
Bonds across the globe sank on Monday as the US-Israeli war with Iran pushed surging oil prices near $120 a barrel, heightening investor fears over inflation which may prompt European central banks to hike interest rates this year.
"Due to the increased volatility on the domestic market... the bond swap tender planned for (March 11) will not be organized," the Polish finance ministry said in a statement, Reuters reported.
"The consistently built pool of liquid funds at the disposal of the Ministry of Finance, exceeding 160 billion zlotys ($43.34 billion), makes it possible to take actions adequate to the market situation."
Meanwhile, the Czech finance ministry said it would nearly halve its bond offer at a Wednesday auction to 5 billion crowns, from a previously planned 9 billion crowns, in reaction to developments in global markets.
Polish 10-year bond yields reached 5.723% at 1412 GMT, having earlier scaled one-year highs, while Czech 10-year yields stood at 4.993%, their highest level in more than two years.
Elsewhere in the region, Hungary's 10-year bond yields rose to their highest since November 2023, with the 10-year paper bid at 7.46%, up nearly 100 basis points from late-February levels.
Hungarian debt agency AKK did not immediately respond to emailed questions on whether it planned any measures to follow moves by the Polish and Czech finance ministries in response to the market turmoil.
Slovakia, a euro zone member, has confirmed it still planned to sell bonds maturing in 2031, 2036, 2037, 2043 at an auction on March 16.
