Integration of Polish Government Bonds Market with Euro Area's Government Bonds Market

Objectives:

            The aim of paper is answer the following questions:

1)      What is the role of government bonds market integration in the monetary union?

2)      What is the role of government bonds market in the euro area and in Poland?

3)      What is the degree of integration between Polish government bonds market with government bonds market in the euro area?

4)      What are the prospects of deepening of integration between Polish and euro area government bonds markets?

Data/Methods

            Critical analyzes of theoretical aspects of financial markets integration in the monetary union. Statistical and econometric analyzes of available data (EUROSTAT, NBP, ECB, GUS)  concern integration of Polish government bonds market with government bonds market in the euro area (Eurostat, GUS). Author applied following measures of financial integration: analyses of yields spreads beta and sigma convergence, evolution of beta coefficient.

Expected results

            Analyses shows tendencies of Polish government bonds market integration with government bonds market in the euro area, barriers of integration, and prospects of integration.

Key words: monetary union, euro area, financial markets, financial markets integration, measures of financial markets integration, government bonds market, beta convergence, sigma convergence, spreads, yields.