Initially they tracked volatile German Bunds, and some were finishing their pre-positioning ahead of the tender. As we expected the tender of new 10-year benchmark (3.8/2015) lured enough bidding interests worth CZK 16.4 bn. The Finance Ministry sold CZK 12.2 bn (offered amount was CZK 13 bn), because as usual some primary dealers didn’t take part in non-competitive tender. The average yield stood at 3.896 % (range of accepted bids 3.87-3.914%), slightly above the market level. However, the tender’s result failed to change market environment anyway and the bonds closed roughly at the opening levels. Today the calendar is empty thus the bonds might find inspiration abroad.
(CSOB - Investment research)