Czech bonds inched lower yesterday, as core markets tumbled. They opened on stronger footing as the Bunds traded in positive territory in the morning. Later on, they reverse the trend as the Bunds did. However, the Czech bonds made only minimal losses, thus they significantly overperformed the Bunds. The market ignored C/A data.
Today there is no domestic event scheduled, and furthermore it’s last trading day on core markets. Traders may focus on the U.S. retail sales. However, we do not expect busy day, thus Czech bonds might be little changed.
(CSOB - Investment research)