There was only slight tendency to weaken, but overall the market was little moved. There was no domestic incentive for the price action, as the central bank left interest rates unchanged. Governor Tuma didn’t change his assessment of the situation, he still sees risks as balanced. He only pointed out at slightly higher April’s inflation (hike in fuel prices) and slowing economic growth abroad. Hence prospect for interest rates development remains the same; flat rates this year and the first hike in the middle of next year. Today the calendar is empty, hence the market will look at Bunds, as usual.
(CSOB - Investment research)