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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
- Czech financials continue to trend higher, mostly driven by the rise in ST bond yields.
- This chart shows that despite the drastic fall in LT bond yields amid rising uncertainty over a range of risk factors (Delta variant, contracting liquidity, …), which has been flattening the Czech yield curve, financials have been mostly sensitive to rising ST rates in the past few months.
- CNB has started a tightening cycle, raised its benchmark twice since June, and is expecting to continue to hike at each of the remaining three 2021 meetings (by 25bps) to curb the inflationary pressures.
- This morning, economic data showed that CPI inflation rose by 3.4% YoY in July (vs. 2.9% expected), up from 2.8% the previous month.
- Czech 2Y yield ticks higher today following the CPI release, breaking above the 1.40% level; next resistance to watch stands at 1.50%.
- MXCZ0FN Index broke above its 2020 high last month and is currently testing its 1,153 resistance (highest level since July 2019.
- Next key resistance to watch on the topside stands at 1,200.
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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