Czech bonds were little changed yesterday.
The 10-year yield shed 2 bps, although
German Bunds were slightly in negative
territory. The market was pretty thin and
shrugged off the February foreign trade
data. Healthy public finance may helped
improved the atmosphere with one day lag.
Today 4-year tender is a key event. The
Finance Ministry offers papers worth of CZK
6 bn. The demand might not be impressive,
because investor may not be eager to buy
bonds ahead of key tomorrow’s ECB
meeting. We expect investors to bid for
papers worth CZK 8 bn. Therefore the bonds
may mainly watch core markets today.
(CSOB - Investment research)