CZK: Koruna On Defensive Amid Risk-Off Mood
Jun-13 09:08
EUR/CZK has crept higher on the back of risk wider aversion. The pair last trades +0.042 at 24.818 and bulls look for gains towards the 50-DMA (24.939) followed by the 25.0 mark. On the flip side, bears keep an eye on Jun 7, 2024 low of 24.537.
- Bank Board's Jan Procházka told Reuters that the next monetary policy meeting (Jun 25) is unlikely to bring any change in interest rates, but policymakers might discuss a potential cut in August. The official said that the Czech economy is operating below potential, while inflationary pressures persist mainly in the services sector. He suggested that the Board was divided between those who believed that the easing cycle was over and those who still saw room for modest monetary easing, and described himself as a member of the latter camp.
- Foreign Minister Jan Lipavský said that the developments in the Middle East represented a 'reasonable response reaction from the state of Israel towards a possible threat of a nuclear bomb' from Iran.
- Czechia's current account surplus shrank to CZK14.40bn in April from the revised CZK33.02bn prior, missing the consensus estimate of CZK31.00bn.
- CZGB yields are marginally mixed across the curve; the PX Index is 0.8% worse off.
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GILT AUCTION RESULTS: Decent Demand Metrics But Soft Pricing At 10-year Auction
May-14 09:08
Looks like decent demand metrics on the 4.50% Mar-35 Gilt auction, though the lowest accepted price of 98.618 was notably below the 98.645 pre-auction mid. However, there has been limited reaction in the secondary market price and in Gilt futures following the publication of the results.
- The 0.3bp tail was tighter than the 0.5bps seen in March and 0.4bps seen in April.
- Meanwhile, the cover ratio of 3.13x was above March’s 2.92x and April’s 2.85x.
MNI: CHINA JAN-APR NEW LOANS CNY10.06 TRLN VS MEDIAN CNY10.47 TRLN
May-14 09:05
- CHINA JAN-APR NEW LOANS CNY10.06 TRLN VS MEDIAN CNY10.47 TRLN
- CHINA END-APR M2 +8.0% Y/Y VS MEDIAN +7.2%; END-MAR +7.0% Y/Y
- CHINA END-APR M1 +1.5% Y/Y VS +1.6% Y/Y END-MAR
- CHINA END-APR M0 +12.0% Y/Y VS +11.5% Y/Y END-MAR
- CHINA JAN-APR TSF CNY16.34 TRLN VS MEDIAN CNY16.54 TRLN
GILT AUCTION RESULTS: 4.50% Mar-35 Gilt
May-14 09:04
| 4.50% Mar-35 Gilt | Previous | |
| Amount | GBP4.25bln | GBP4.00bln |
| Avg yield | 4.673% | 4.638% |
| Bid-to-cover | 3.13x | 2.85x |
| Tail | 0.3bp | 0.4bp |
| Avg price | 98.638 | 98.905 |
| Low price | 98.618 | 98.873 |
| Pre-auction mid | 98.645 | 98.872 |
| Previous date | 15-Apr-25 |
