The auction of ten-year old government bonds influenced trading on the money market on Monday. Bids of financial institutions reached surprising SKK 10 billion. Tatra Banka dealer Jozef Bozek informed that the Finance Ministry accepted SKK 8 billion of the total bids. Minimal yield in auction was 4.998 percent, ceiling was 5.145 percent and the average reached 5.125 percent. Commercial banks deposited SKK 13.205 billion in their reserve accounts in the central bank, meeting the minimum reserve requirement on a cumulative basis at 100.65 percent. The dealer suggests that the banking sector is in a moderate deficit of liquidity, which he estimates at SKK 2.7 billion.

On Tuesday, the central bank will hold its regular sterilization repo tender, which could roll-over maturing repo deals of nearly SKK 83 billion. The central bank could withdraw around SKK 80 billion from the market in the current repo tender.

One-day to two-week deposits were quoted at 4.22/ 4.5 percent p.a. at the beginning of the week, one-month deposits were available at 4.0/4.2 percent p.a., two-month at 3.95/4.15 percent p.a. and three-months deposits were at 3.9/4.1 percent p.a. The price of six-month funds was 3.75/3.95 percent p.a., nine-months to one-year money was available at 3.6/3.8 percent p.a.