The
yields initially rose some 4 bps, but there
was only little interest to sell bonds. Later
on, the bonds erased part of the losses after
US PPI surprised on the downside. There
was no domestic stimuli for the market.
Bonds usually ignore political events and it
was the case yesterday.
Today there no event in the schedule, thus
the price action on the core markets might
be crucial for Czech bonds. A rise of Bunds
and Treasuries in American trading opens
space for some gains today.
(CSOB - Investment research)