In an aftermath of Senate election, the governing CSSD leaders are bickering about the future turn of the party. It seems that the social democrats will turn to the left where the communists took a large portion of their previous votes. Chairmen of the CSSD and the Communist Party agreed to support each other's candidates in the second round of Senate election and the two parties agreed on a coalition in several regional parliaments.
Prime Minister Zeman again criticized vice-governor Tuma who said last week that interest rates might, possibly, be raised. Zeman said that interest rates should fall, instead. A brilliant monetary economist's insight!
ODS's chairman Klaus said that the ODS would not try to overthrown the CSSD government. He also said that the election outcome, where CSSD's voters migrated to the four-party coalition and communists, is unexpected. It seems that he plans to see the social democrats to disintegrate completely.
The Czech koruna remained flat yesterday at 34.70 CZK/USD and lost only marginally to 40.40 CZK/USD (from 40.30 CZK/USD in the morning).
Bonds lost marginally, 5-10 bps. with larger losses concentrated at shorter maturities.