The Czech bonds opened slightly higher yesterday, but they were mildly losing ground during the session. The key incentive was the price action on core markets as usual. Hence the bonds closed little changed in the end.
Today the key event is the meeting of the central bank. However, the market might be little affected as no one expect any action. Nevertheless, comments after the meeting may be interesting. We kept our view that the most likely scenario is stable rates for the whole year. The risk of another rate cut is higher than the risk of a hike. Summing up, the bonds might track Germen bunds as usual.
(CSOB - Investment research)