With the Czech koruna on a four month high, the country’s bond rates have plummeted, as investors anticipate further interest rate cuts by the central bank to zero levels. Yesterday, the country managed to sell CZK 4.7bn (€189m) worth of 9-year government paper, with investors making bids of twice that amount. The yield on the latest issuance was 2.14%, down from 2.32%. The central bank cut interest rates to 0.50% in June, and a bank official recently hinted that continuing economic stagnation could push the rate down further.
