Czech banks remain busy: the Komercni announced 2,300 layouts and reshuffled its supervisory board, CSOB keeps making acquisition noises and IPB cooks its accounts to get them ready for the general meeting. The Cabinet increased the minimum wage to CZK 4500 (USD 120) and promised CZK 6 bil. (USD 155 mil.) to members of credit-unions tunneled by their respective management. Has anybody heard anything about moral hazard?
The koruna strengthened yesterday to 36.2 CZK/EUR, briefly even to 36.1. As the euro gained slightly against the dollar, the koruna overpassed the 39 CZK/USD level and is approaching 38.5 level, its strongest since end of April
On Wednesday we saw a minor selling interest on short end and similarly minor buying on long end. The traded volumes were however so low that no major conclusions can be based on that.
Benchmark prices: MoF6.75/2005 102.45-102.75 (YTM 6.12-6.05) MoF6.30/2007 100.40-100.70 (6.22-6.16) MoF6.40/2010 100.45-100.75 (6.33-6.29).
(Ondrej Schneider and Jan Brozik)