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Surging Inflation Leaves 10Y Real Yield At the Bottom Of EM ‘League’

CZECHIA
  • Despite the sharp retracement in LT bond yields, with the 10Y yield currently testing its key resistance at 3.25%, Czech Republic still offers the lowest 10Y real yield among the EM world after Turkey.
  • The significant surge in inflation in January plunged the 10Y real yield to a historical low of -6.7%.
  • Next inflation update will come out on March 10, with sell-side analysts expecting CPI to accelerate to 10.4% in February.
  • Next resistance to watch above 3.25% on the 10Y yield stands at 3.50% (April 2012 highs).
  • On the downside, support to watch stands at 3%.

Source: Bloomberg/MNI

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