The Czech Statistical Office released new macroeconomic figures yesterday. Industrial output recorded a surprising 11% y-to-y growth in August (Patria expected 8.0% growth) and construction output rose as well in August, by 8.2% y-to-y (Patria forecasted 4.5% growth). Both figures confirmed the ongoing recovery of the Czech economy.
The Czech koruna yesterday closed at 40.75 CZK/USD and 35.50 CZK/EUR, i.e., slightly higher than in the morning trading.
The Czech bond market was very quiet on Tuesday. The surprisingly high industrial output figure, released in the morning, sent prices downward, though trading activity was light. In fact, prices at present are still a bit higher than the lows reached on Friday, but we expect that those lows will be met again soon.
Current benchmark prices: MoF 6.75/05 99.25-55 (-15 bps), MoF 6.30/07 95.25-55 (-20 bps), MoF 6.40/10 94.20-50 (-20 bps).
(Monika Procházková, Dalimil Vyškovský)