There was positive mood on Czech bond market yesterday as markets were absorbing dovish comments coming from CNB. The possibility of an rate cut has grown since the beginning of this week and this has increased demand for fixed income assets, especially in case of longer maturities. As a result the yield on 10Y bond was 7 bps lower at 3.36%.
Although the domestic calendar for today is empty, the positive sentiment supported by the rate cut expectations should prevail. Also a development in the core markets could provide some additional support.
(CSOB - Investment research)