Czech bonds were almost unchanged yesterday. Statistical releases didn’t bring any surprising information on the economy (more in the FX part). Moreover, an opposite direction of US and eurozone bond market wasn’t clear incentive as well. The market was pretty thin, some investors only bought 10-year benchmark, pushing it slightly higher.
Today, the market might be quiet again. The investors may waits for tomorrow’s 4-year benchmark tender. The Ministry of Finance will offer bonds worth only CZK 8bn, which is rather small amount regarding to a new practice of only one auction per month. Hence there might be enough interest among investors to buy whole amount. Hence the bonds may continue to hover in a sideways range.
(CSOB - Investment research)