Czech bonds halted a three-day slump on Friday sending yields some 2 bps lower. The market again tracked core markets, as the domestic calendar was empty. German Bunds rose, because German retail sales fell more than expected in February.
Today, the domestic calendar is unattractive. The March state budget balance usually doesn’t move the market. Moreover, Tuesday’s trade data are important mainly only for the FX market. The key inflation data are due next Monday. Hence as a consequence, the market may watch Bunds and Treasuries. Outlook for core markets is more or less negative thus Friday’s rebound may not last long.
(CSOB - Investment research)