Czech bonds opened weaker yesterday, but they erased all losses even before CNB ended its monetary policy meeting. The central bank didn’t surprised anyone, as left its rate unchanged. Moreover, governor Tuma sees all risks (growth and inflation) as balanced. CNB Board’s members noted that structure of growth changed, but they didn’t decided on that. The market shrug off information that the government will issue an extra bond later this year to cover its old debt to the central bank. The issue, yet to be approved by the parliament, would be worth CZK 22.5 bn. That makes two thirds of usual issuance amount for each quarter this year. Hence an influence of core markets was again the most visible yesterday.
(CSOB - Investment research)