Eagerly awaited inflation numbers did not have any lasting effect on the markets, as they fell exactly in line with expectations.
Parliament speaker Vaclav Klaus harshly criticized CSOB that has taken over the bankrupt IPB, that it has stopped financing "perfectly healthy companies." Evil bankers, them...
The Czech koruna was falt to euro on Friday, hovering around the 35.30 CZK/EUR level. Needless to say, the euro fell again vis-a-vis the dollar and so did the koruna, closing at 40.70 CZK/USD.
Bonds were falling again on Friday, despite pretty favourable figures released that morning. Government bond auction was on Friday as well, which results were not very attractive. With maximum acceptable yield not set again, the average yield in the auction ended up just on the market bid side yield. However, of 7.28 bln. CZK asked (and 5 bln. sold) , MoF bought 3.68 bln. itself, thus leaving only 1.32 bln. sold to the investors. That assures that original auction orders were pretty higher than result average yield 5.93, many seem to have been bidding much above 6%. Such an unattractive news sent the market further lower, though the downfall was not dramatic anyway.
IRS rose in the late afternoon, rising the probability that Monday morning won't be any bullish.
Current benchmark figures: MoF 6.75/05 100.85-15 (-25 bps), MoF 6.30/07 96.60-90 (-10 bps), MoF 6.40/10 95.60-90 (-10 bps).
(Ondrej Schneider and Dalimil Vyskovsky)