Free Trial

Koruna Extends Losses Amid Light Domestic News Flow


EUR/CZK continues to trade with bullish bias, last sitting +0.058 at 23.886. The rate remains trapped in a bull channel with a ceiling intersecting at 24.064. A break here would expose 24.137, which capped gains on Mar 17. On the flip side, a slide through channel floor at 23.643 would open up Jun 27 low of 23.573.

  • Komercni Banka wrote in a research note today that while the Finance Ministry plans to issue CZK150-250bn of CZGBs in 2H2023, down from CZK280bn in 1H23, they believe that the actual issuance in the second half of the year will be around CZK200bn. The first auction of 2H2023 will be held tomorrow, with CZK6bn of 2031 bonds and CZK8bn of 2034 bonds on offer. The government is trying to cut spending as record-breaking budget deficits are seen fanning inflation in Czechia.
  • Czech FRAs have eased across the curve today. CZGB yields remain at depressed levels following initial downswings.

To read the full story



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.