Issuance activity: Tomorrow, MinFin is scheduled to auction CZK3.0bn of 2034 bonds, CZK4.0bn of 2037 bonds and CZK2.0bn of 2038 floaters. In mid-May, the MinFin began accepting orders for the new retail CZGBs. By Monday, the quantity demanded had already reached CZK44.3bn. Consequently, we have lowered our estimate of this year's gross CZGB issuance to CZK400bn, which is at the lower end of the CZK400–500bn interval presented in the MinFin’s debt strategy. However, with CZK119.4bn of CZGBs sold in primary auctions, and an additional CZK50.6bn of taps and CZK38.1bn of switches conducted on the secondary market ytd, the issuance pace does not need to slow materially in 2H26. Overall, despite the success of the retail bonds so far, this will likely not be enough to compensate for the increase in the state budget deficit in 2027.

Issuance activity: Tomorrow, MinFin is scheduled to auction CZK3.0bn of 2034 bonds, CZK4.0bn of 2037 bonds and CZK2.0bn of 2038 floaters. In mid-May, the MinFin began accepting orders for the new retail CZGBs. By Monday, the quantity demanded had already reached CZK44.3bn. Consequently, we have lowered our estimate of this year's gross CZGB issuance to CZK400bn, which is at the lower end of the CZK400–500bn interval presented in the MinFin’s debt strategy. However, with CZK119.4bn of CZGBs sold in primary auctions, and an additional CZK50.6bn of taps and CZK38.1bn of switches conducted on the secondary market ytd, the issuance pace does not need to slow materially in 2H26. Overall, despite the success of the retail bonds so far, this will likely not be enough to compensate for the increase in the state budget deficit in 2027. Although no details of the 2027 budget are likely to be released until the end of August, the easing of fiscal rules has already been approved by the lower house of Czech parliament. This opens the door to a deeper public finance deficit of over 3% by extending the escape clause to most infrastructure investment (investment transfers from the state budget to the State Fund for Transport Infrastructure reached CZK94bn last year, i.e. 1.1% of GDP).

Market situation: Fixed income securities continue to follow headlines about the Middle East, with CZGB ASWs still remaining tighter than the 90D average. On the Czech data front, Czech PPI rose 1.4% mom in April, 0.5pp above BBG consensus.  Prices of construction materials also rose sharply, by 2.4% mom in April and by nearly 5% yoy. Combined with the continued rapid growth in real estate prices and robust consumer demand, it is therefore likely that core inflation will exceed the 3% yoy during the remainder of the year.

Rates outlook: We continue to expect interest rates to remain on hold in the near term given the CNB willingness to react only to second round effects (core inflation). However, with more significant oil price shock and easier fiscal policy risks of our April forecast both starting to materialize, the risk of a rate hike later this year is increasing.

Colt CZ is convening an Annual General Meeting. The meeting will take place on June 26, 2026, at 2:00 p.m. The record date for participation in the AGM is June 19, 2026.

Shareholders will vote on the proposed dividend of CZK30, among other things. The dividend record date is expected to be July 2, 2026. This means that Colt CZ shares will last trade with entitlement to this payment on Tuesday, June 30, 2026. Payment is expected to begin on October 2, 2026.

The CZK 30 dividend offers a gross yield of +2.9%.

Colt CZ is convening an Annual General Meeting. The meeting will take place on June 26, 2026, at 2:00 p.m. The record date for participation in the AGM is June 19, 2026.

Shareholders will vote on the proposed dividend of CZK30, among other things. The dividend record date is expected to be July 2, 2026. This means that Colt CZ shares will last trade with entitlement to this payment on Tuesday, June 30, 2026. Payment is expected to begin on October 2, 2026.

The CZK 30 dividend offers a gross yield of +2.9%.