Czech bonds ones again went up yesterday as benign inflation supports positive trend. The yield curve moved lower by 4 bps, and it has lost 20 bps since beginning of the year. Czech bonds clearly overperformed German Bunds for several consecutive days, therefore the spread shrunk to a half or mere 14 bps at the long end segment of the curve since start of the last week.
Today the calendar is empty thus the market may only digest yesterday’s figures and track core markets. There are no significant data until the end of the month when the central bank holds its regular meeting. Thus Czech bonds may keep its positive tendency, but it may slow down.
(CSOB - Investment research)