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10Y Yield Gradually Approaching its 2.66% Resistance
- This morning, economic data showed that PPI inflation accelerated to 13.5% in November, its highest level in 29 years.
- Yesterday, it was confirmed that all seven CNB policymakers will attend the December 22 rate meeting.
- EURCZK ticks higher this morning after finding support slightly above the 25.20 level; a break below that level would have opened the door for a move down to 25. On the topside, first resistance to watch stands at 25.43 (100DMA).
- Monetary policy divergence between CNB and ECB could continue to support the CZK (over Euro) in the medium term.
- Czech 10Y yield has been retracing sharply higher in recent days following CNB governor Rusnok’s comments on the terminal rate (closer to 4% than 3%). The 10Y yield broke above the 2.6% level yesterday and is approaching its ST resistance at 2.66%. On the downside, support to watch now stands at 2.50% (50DMA).
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.