Traders waited for US payrolls due in the afternoon. Surprisingly strong figure made investor pretty active in the last hour of the trading. The yields rose by some 5 bps afterwards. The price action more or less mirrored German Bunds. Czech 13-year bond yield up.
Today the key figure of the months, inflation, is due. Nevertheless even slight rise in consumer price hardly change market expectation of the next central bank’s behavior. Especially the EUR/CZK again below the key 30.00 level makes any rate hike difficult to imagine in foreseeable future. In contrary, if the koruna rise even more, the bank may get under pressure to cut rates again. Hence the bonds may mostly track core markets again today.
(CSOB - Investment research)