Czech Republic - Factors To Watch on Jan 10

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BOND AUCTION

The finance minitry offers a 7 billion crown tranche of the 3.80 percent coupon bond in an auction which market players expected to draw solid investor interest, despite a seven-month political and reform vacuum in the country.

The note yielded 3.81/3.77 percent on the secondary market late on Tuesday, nearly 20 basis points less than the euro zone counterpart.

[RTRS-LEN-CZ-GVD]

- For auction details and results, double click on the code in brackets:

The Czech crown hugged a narrow range against the euro while local currency debt yields inched up on Tuesday as the market caught up with rising euro zone equivalents before fresh supply of long-term government bonds.

- For previous updates on Czech crown moves click on [CZK/].

C.BANKER TALKS OF RATE CUT

Czech central bank Vice-Governor Miroslav Singer suggested on Wednesday that interest rates could be cut to offset the strength of the crown, a view contrary to market expectations that see a rate rise as the next move.

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INFLATION LOW, TRADE IN SURPLUS

Inflation rose in December but held well below the tolerance band of the central bank (CNB), reinforcing market expectations of a pause in policy tightening in the next few months.

[nL09931969] [RTRS-LEN-CZ-ECI]

- For INSTANT VIEWS on December inflation and November trade data, double click on [ID:nL09302249] [ID:nL09174055].

- For real-time economic data releases and consensus forecasts, double click on the code in brackets:

- A full table of analysts' forecasts for other economic indicators due out in January can be accessed through Reuters page .

GOVERNMENT APPOINTMENT

President Vaclav Klaus named a new government led by rightist Prime Minister Mirek Topolanek on Tuesday as the European Union member tries to extract itself from a seven-month crisis sparked by an inconclusive election.

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- For FACTBOX on key posts in the new government, double click on [ID:nL08820235].

- For FACTBOX on key points of the coalition agreement, see [ID:nL08658091].

- For most recent stories on Czech politics, double click on [RTRS-LEN-CZ-POL].

ECM IPO OPTION

Bank Austria Creditanstalt has exercised in full an over-allotment option for 127,500 shares in Czech developer ECM Real Estate Investments , the company said.

[nL09127531] [RTRS-LEN-CZ-ECMPsp.PR]

RUSSIA MAY CUT OIL OUTPUT

Russia threatened on Tuesday to cut oil output, exerting pressure on Belarus to climb down in a trade dispute that has halted its main crude export pipeline and drawn Europe's condemnation.

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- For related FACTBOX, double click on the following codes:

[ID:nL09815694]

[ID:nL0938570]

Overview of past economic data and market forecasts For Instant Views of key economic data click on [CZ/INSTANT] For summary of economic data and forecasts For diary of forthcoming Czech events [CZ/DIARY] For calendar of east European economic indicators [CONV/DIARY] TOP NEWS -- Emerging markets [TOP/EMRG] TOP NEWS -- Convergence watch [TOP/EAST]

For an economic indicator diary for the euro zone, the United States and other Group of Seven countries see

For real-time stock market index quotes click in brackets: Warsaw WIG20 Budapest BUX Prague PX

News editor of the day: Alan Crosby on +420 224 190 477; fax: +420 224 229 935

E-mail: prague.newsroom@reuters.com

Reuters Messaging: alan.crosby.reuters.com@reuters.net

((Compiled by Marek Petrus; Reuters Messaging: rm://marek.petrus.reuters.com@reuters.net; e-mail: prague.newsroom@reuters.com or marek.petrus@reuters.com; Tel: +420 224 190 477))

[PRAGUE/Reuters/Finance.cz]