They opened on stronger footing, as they responded to gains of German Bunds in previous days. The yields fell 4 bps in the morning. Later on, they pared some gains after the U.S. Treasuries sharply fell. Vice-governor Singer’s warning that the central bank may lower interest rates helped the bonds in the morning too. (see FX part). Today the domestic cale ndar is empty, therefore the market may look at core markets. After yesterday rise, the bonds may pare the gains. Especially if the afternoon U.S figures will be strong, Czech yields may
rise.
(CSOB - Investment research)