Free Trial

Surging Inflation Pushes 10Y Real Yield To Historic Lows

CZECHIA
  • This morning, economic data showed that Czech inflation accelerated to 9.9% in January (vs. 9.3% expected), up from 6.6% the previous month.
  • CNB policymakers have warned in recent weeks that Czech inflation could reach the low double digits in the near term (Q1) before starting to gradually decline.
  • With a 10Y yield trading at around 3%, Czech Republic now offers the lowest 10Y real yield among the CEE region and the third lowest among the EM world (after Turkey and China PPI-adjusted).
  • Risky assets and CZK have also been impacted by the renewed Russia-related tensions in recent days.
  • Current account deficit came in slightly better than expected at 18.3bn CZK in December (vs. -19.5bn CZK).

Source: Bloomberg/MNI

To read the full story

Close

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.