Czech bonds marched lower yesterday as sell-off continued on emerging markets. Moreover, yields rose even on core markets, as especially ECB’s staff sounded pretty hawkish yesterday. In the morning, benign inflation delivered some relief to the market, but that influence was short-lived. Czech bonds Already 2-year auction signaled at noon that investors weren’t eager to buy bonds. The demand was only CZK 9.2 bn, while the Finance Ministry offered CZK 6 bn. That’s worse result than in previous auctions.
Today the GDP data may affect the market. The market expects strong growth, but 6.9 % figure was beyond most optimistic expectation. As a consequence, the bonds dipped further. However, German Bunds are in positive territory this morning, therefore the Czech market may pare some early losses over the day.