The Czech bond market tracked German Bunds higher yesterday. 10-year yield lost some 3 bps. The market ignored data on pricing power among producers. PPI fell 0.2 % in June in contrary to rise in consumer prices. Thus it confirmed an absence of any inflanationary pressures in the economy. Today market atmosphere might not change. Traders may let little attention to retail sales. German ZEW survey might be more important.
ČSOB - Investment Research