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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.
CZECHIA
- Economic activity could start to significantly decelerate in H2 following the dramatic rise in ST rates.
- Czech 2y yield broke above the 5% key resistance in the end of last week as inflation continues to surprise positively, currently trading above the high reached prior the Financial Crisis.
- Yesterday, CNB member Benda mentioned in an interview that Czech inflation return towards the 2% target will be delayed by half a year (to end-2023) due to the war shock.
- Historically, a dramatic tightening in financial conditions has been followed by a significant economic slowdown in the next 6 to 12 months.
- The chart below shows that the 2Y change in the 2Y yield has strongly led the industrial production (Proxy for economic activity) by 6 months in the past 15 years.
Source: Bloomberg/MNI
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.
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