The Czech bond market initially drop yesterday in step with German Bunds. Both markets were affected by drop of U.S. Treasuries in late US trading. Moreover the slight was supported by jump in German investors’ confidence ZEW. Ten-year yield was up some 5 bps in the mid of the session. However, opening of the US market changed direction and bonds erased most of previous losses to close only 2 bps higher. Today no domestic event is on agenda, hence investors will wait for Fed‘s chairman testimony due in the afternoon. Greenspan may set direction for days to come.
ČSOB - Investment Research