CNB's decision to put IPB under forced administration and the consequent sell of the IPB's assets and liabilities to CSOB dominate the Czech capital markets today. Please, watch our web page for related stories as they emerge.
After jumping up and down, the koruna ended last week at 36.05 CZK/EUR, i.e. where it started. As the euro gained against the dollar to 96.5 cents/EUR, the koruna appreciated against the dolar to 37.10 CZK/USD, level unseen since March.
Though bond prices ended up higher than previous closings on Friday, the day was not that optimistic. Prices were falling, some downfalls reached as much as 1 percentage point again. Paradoxically, prices started to rise after IPB's forced administration anouncement and the rise was much faster than the downfall. Market has closed 2 hours sooner than usually, because of absence of enough market-makers.
Closing prices: MoF 6.75/05 101.40-70 (+55 bps), MoF 6.30/07 98.30-60 (+50 bps), MoF 6.40/10 98.30-60 (+50 bps).
(Ondrej Schneider and Dalimil Vyskovsky)