CZK: Koruna Ticks Higher Amid Upbeat Data, Then Trims Gains
Jan-12 10:15
EUR/CZK slipped this morning and last deals -0.016 at 24.670, following yesterday's upswing caused by the release of below-forecast inflation data. The koruna started the European session on a slightly firmer footing, before trimming gains. Bears look for losses towards Nov 29 low of 24.203, while bulls keep an eye on Jan 2 high of 24.867.
- CNB Deputy Governor Zamrazilova reiterated that the pace of monetary easing will depend on inflation developments, with the central bank ready to pause or accelerate if needed. She noted that January inflation data will be a key signal for the Bank Board, while she expects policy to remain restrictive for the time being.
- Czechia's current account surplus unexpectedly widened to CZK43.52bn in November from CZK19.84bn prior, beating expectations of a contraction to CZK6.00bn by a wide margin. The upper end of the forecast range in a Bloomberg survey was CZK15.00bn. Separately, ex-auto retail sales rose 0.9% Y/Y in November, beating the -1.6% consensus forecast. Upbeat data releases may have provided some support to the koruna, but their impact has seemingly dissipated.
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ITALY AUCTION RESULTS: 3/7-year BTP
Dec-13 10:16
| 3.85% Sep-26 BTP | 4.00% Nov-30 BTP | |
| ISIN | IT0005556011 | IT0005561888 |
| Amount | E3bln | E3bln |
| Previous | E3bln | E2bln |
| Avg yield | 3.24% | 3.63% |
| Previous | 3.75% | 4.21% |
| Bid-to-cover | 1.56x | 1.54x |
| Previous | 1.54x | 1.50x |
| Avg Price | 101.66 | 102.42 |
| Pre-auction mid | 101.620 | 102.321 |
| Prev avg price | 100.35 | 98.98 |
| Prev mid-price | 100.300 | 98.900 |
| Previous date | 10-Nov-23 | 10-Nov-23 |
EGB OPTIONS: More Bobl put spread strip
Dec-13 10:12
OEG4 118.00/117.25ps 1x2 with OEG4 117.75/117.00ps 1x2, bought the 1 strip for -7 (receive) in 2k.
GILT AUCTION RESULTS: Better auction than 2 weeks ago - market relieved, but still not "strong" auction
Dec-13 10:08
- Better auction for the 30-year gilt than a couple of weeks ago (the final auction before the new 30-year issue is launched in January).
- However, note the smaller auction size seen today (GBP2.00bln vs GBP2.75bln previously).
- The price of the 3.75% Oct-53 gilt has moved higher on the auction result - above the average price at auction - as the worst fears surrounding the auction have not been realised.
- However, even though this auction is an improvement, the lowest accepted price at today's auction was still lower than the pre-auction mid-price, again despite the smaller size.
