Although yields on core markets continue to rise, Czech bonds weren’t affected significantly. Investors are not ready to sell now, as there is a prospect for stable interest rates for foreseeable future. he key event is a 4-year tender (3.8/2009). The finance ministry will offer papers worth CZK 8 bn. There might be enough demand among investors, but not as high as in the 10-year tender last week. Tender results may not affect price action, hence development on core market might be decisive. The market should shrug off the April retail sales.
(CSOB - Investment research)