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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
- We have seen that recession risks have risen in Czech Republic with 2Y10Y yield inverting in the end of October.
- In addition, the sharp tightening in financial conditions with the surge in ST rates is also pricing in a significant deceleration in the economic activity.
- This chart shows that the 2-year change in the Czech 2Y yield has strongly led the industrial production by 6 months (proxy for economic growth).
- The divergence we saw in 2016/2017 was 'offset' by the significant increase in Chinese liquidity (i.e. 'reflation' trade).
- With liquidity contracting in China and decelerating strongly in DM economies, risks are skewed to the downside.
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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