The yields added some 5 bps across the board. Thus the yields erased all Tuesday’s gains. Drop of Czech bonds was similar to German bunds thus the closely watched spread remained unchanged. Despite the significant price action the activity was minimal, as in previous days.
Today some correction is likely, since US Treasuries erased part of losses they suffered after FOMC’s hawkish words. Moreover, expected interest rate cut next week might impede to the negative trend to prevail. There is no event scheduled for today. The activity hardly rise by the end of the week since Easter holidays start in many countries tomorrow.
(CSOB - Investment research)