Czech economy has been digesting the IPB's fall and takeover by the CSOB, so there is little other news. Especially ODS seems preoccupied with the loss of its "favorite bank" and seeks revenge. The Cabinet won over the owner of ailing tractor company Zetor and will bail it out once more, after three unsuccessful attempts of previous governments. The cost is still unknown.
The Czech Senate approved the new electoral law that moves the Czech system towards a majority based one. Ironically, it was the Social Democrats who stand to lose most from the new system, who finally voted for the amendment, amid a heavy arm-twisting by the leaders of the party.
The Czech koruna remained stable on Friday, moving sideways around 38.4 CZK/USD and 36 CZK/EUR. Trading was quiet as markets were expecting today's GDP numbers.
Czech bonds fell again on Friday, though it was more a quiet day for market-makers. Long term maturities were the most losing, as usually, but also short term maturities were falling a bit, selloffs on old taxation bonds continued. The market seems to be waiting for today's GDP figures, which could cause another even higher downfall.
Current benchmark prices: MoF 6.75/05 100.55-85 (-25 bps), MoF 6.30/07 97.60-90 (-5 bps), MoF 6.40/10 97.70-00 (-70 bps).
(Ondrej Schneider and Dalimil Vyskovsky)