There was no domestic incentive behind the price action. As usual, the bonds tracked German Bunds. The yields erased some 5 bps along the curve, while the front end underperformed. Today no event is scheduled, but tomorrow’s meeting of the central bank may bring some nervosity on the market. However any action is pretty unlikely, as the bank didn’t received any new breaking input. Hence the market might look at German market again, but the activity might be even lower as investors may await the result of the meeting.
(CSOB - Investment research)