The IMF-World Bank congress in Prague begins today and protesters are gathering in the city. Police is ready as well… The IPB fate shadows over Czech politics even as it is being overtaken by the CSOB. The opposition Christian Democrats are bickering among themselves as to who represents the "party line" on the issue. It also visualizes the split within the party whom they should date - Social Democrats (IPB fall was OK) or ODS (IPB was healthy bank and the government lied)
Meanwhile, the Minister of Agriculture is angry with importers of yogurt and wants them to stop flooding the Czech market. Hard to say, but he seems serious.
As the Friday's intervention against the dollar is fading, the euro weakens again vis-a-vis the dollar. The koruna remains quiet, but follows the trend: it gained 10 hallers to 35.50 CZK/EUR and lost 30 hallers to 40.60 CZK/USD yesterday.
Bond market was very quiet on Monday. In fact, we do not have information about any trade that could have been done on that day, and even interest calls concetrated only on few issues and into few minutes of time. It's hard to say where the reason for such a situation could be - lack of economic data at the end of the month, stable crown, short week, IMF meeting in Prague (are traders on holiday???). So, just to complete the comment - the prices did not move any direction even by a basis point, and so did not IRS.
Current benchmark prices: MoF 6.75/05 100.30-60, MoF 6.30/07 96.40-70, MoF 6.40/10 95.40-70.
(Ondrej Schneider and Dalimil Vyskovsky)