Yesterday, Czech bond yields followed the trend on the European market and rose between 8 to 11bps. The spread stayed stable at the long end of the yield curve. The Ministry of Finance sold the 4-year government bond at an average yield of 2.368%, 14bps below the last auction hold in May. The demand was much lower compared to last week 10-year bond auction but the Ministry sold the whole amount offered.
Today, the yields on the Czech bond market will watch and follow the European yields and therefore the continuing growth of yields is probable.
(CSOB - Investment research)