Nevertheless, the
losses were minimal, as 10-year yield added
only 3 bps and the short end of the curve
was almost unchanged. Initially bonds
inched higher, but it inspired some investors
to take their profits. Moreover, German
Bunds moved into negative territory in the
afternoon and supported that trend. The
market ignored domestic data on retail
sales, which pointed to some rebound of
sales in shops in November. However, it
hardly change current dovish opinions in the
central bank.
Today there is no domestic agenda,
therefore traders may look at core markets.
After recent rise in bond prices there is only
a little room for another drop in yields.
Moreover, the market likely won’t received
any other comment from the central bank
until the meeting scheduled on next
Thursday. Thus the bonds may stay around
current levels.
(CSOB - Investment research)