Koruna Weakens as Czech Retail Sales Decline; Bonds Advance

The koruna depreciated after data showed that Czech retail sales declined for a third month in May and services and manufacturing output shrank in June for a fifth month in the euro area.

The Czech currency retreated 0.2 percent to 25.529 per euro by 12:14 p.m. in Prague. The government’s 10-year bonds gained, cutting yields six basis points, or 0.06 percentage point, to 2.974 percent, according to generic prices compiled by Bloomberg.

Retail sales eased 2.1 percent from a year ago, compared with a 4.1 percent decline in April, the Prague-based Czech Statistics Office said in a statement on its website today. A composite index based on a survey of purchasing managers in the 17-nation euro area rose to 46.4, London-based Markit Economics said today. A reading below the 50 level indicates contraction.

To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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