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Free AccessMorning Summary: Czech Deficit To Reach 8.8% of GDP in 2021
- Covid cases have stabilized around 4,000 after falling by 8,000 in the past 6 weeks, and are currently at their lowest level since early December.
- As yields have stabilized across central Europe, Czech government sold more bonds than originally planned amid surging demand. The gvt placed 21bn CZK of debt on Wednesday, exceeding the auction's target of 14bn. With the 10Y yield trading at a premium of 225bps to the German Bunds, investors seeking higher returns have been piling into Czech debt despite the country's record borrowing plans CZK (BBG).
- According to the Ministry of Finance latest forecasts, government sees GDP growth at 3.1% in 2021 and 3.7% in 2022. in addition, Czech R. is expected to run a deficit of 8.8% of GDP in 2021, up from 6.2% last year. The gap is then expected to fall to 5.9% in 2022.
- At 9.30am (London time), PM Andrej Babis is expected to comment on outlook for lockdown easing and government changes (BBG).
- There are no important economic data to watch today.
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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.