It was partly delayed reaction to Friday’s US payrolls, but overall positive atmosphere weighted too. The whole yield curve lost some 4bps. Nevertheless, the market was pretty thin, thus only few deals were done.
Today, of course, all eyes will be on the February inflation. The low monthly rise of CPI (0.2% m/m) should raise probability of another rate cut at the end of the month. Moreover, the CNB’s minutes will be interested too, because may reveal some details about opinions of new board members. All at all, data should be positive for the market, thus bonds may rise again, unless German Bunds fall.
(CSOB Investment research)