Investors kept off the market as all important events already passed. Only a meeting of the central bank is scheduled at the end of the month. Moreover 4-year tender due on Wednesday is less important, because short-maturity papers is easy to sell. Thus traders watched price action on the core markets, but they only partly followed German Bunds into a negative territory. So the spread over bunds tighten after several days of widening. Today no event is due, hence the market might be quiet again. Traders may look at German Bunds, but it’s doubtful if they will tracked them precisely because a speculation on rate cut in eurozone will hardly affect the Czech central bank.
(CSOB - Investment research)