They mostly watched euro
market, therefore they opened stronger.
Later on, a deep drop of German Bunds
affected also Czech market, and the yield
curve rose some 2 bps. Czech bonds could
not have fell further due to prospects for
stable interest rates at least in the first half
2006. There was no domestic event able to
drive the market.
Today no event is expected, the market
waits for the policy meeting of CNB at the
end of the month. Therefore the bond
traders may again look at core markets, but
the bonds might be resistant to any
downward pressure.
(CSOB - Investment research)