Treasury bonds have grown significantly in popularity over the past year. According to the Finance Ministry's data, the total amount of securities sold was nearly PLN 28.4 billion, while a year ago the figure was over PLN 17 billion. In January-April this year, the sale was already close to PLN 14 billion. Recent months have brought sales of PLN 3-4 billion. The record in this respect was set in April 2020 with the result of over PLN 5.4 billion.

 

“Retail bonds have always accounted for 4-5 per cent of the total issue value. I think it will even be around 15 per cent this year, a threefold increase in share. People really fell for them because, firstly, they have higher interest rates than deposits, secondly, they are even more secure, after all, the state stands behind their safety”- explains Marek Zuber, an economist, in an interview with the Newseria Biznes news agency.

 

As the expert points out, other investment avenues offering opportunities for higher returns than bonds - such as stocks, resources, currencies or funds of these assets - carry higher risks, meaning a loss is as likely as gain, and most investors don't have the mental strength to watch their wealth melt away and not realize losses but wait for the trend to reverse.