Czech bonds moved higher on Friday, as the market digested governor Tuma’s word on immanent rate cut. The whole yield curve fell some 6 bps. The front end completely discounted rate cut of 25 bps on the next Board meeting. The rest of the curve is pushed lower, too. Longer maturity bonds also gains from expectation of rather thin new government bond offer this year. Finally, expectation of rate cuts in Poland, Slovakia and Hungary makes positive sentiment in the whole region.
Today the market might take a nap ahead of tomorrow’s release of issuance calendar for the next quarter.
(CSOB - Investment research)