Czech bonds firmed on Friday. With no domestic incentives they followed euro zone bond market movements. Although German Bunds turned down in the afternoon, the earlier Czech market close prevented to lose all early gains.
Even this week is poor on important Czech events. The most serious one is the CNB meeting on Thursday. We do not expect any rate change, however the market might be interested to hear governor’s comments. Therefore we expect Czech bonds will copy their European counterpart development till Thursday.
(CSOB - Investment research)