Czech bonds flourished yesterday, as comments of central bankers were rather dovish. Strong koruna and pretty dovish comments from CNB Board member Michaela Erbenova paves the way for a rate cut on upcoming policy meeting (see FX part). The whole yield curve fell by 7 bps. Also money market rates dropped. Today no event and no comment is due. Central bankers will be silent until the policy meeting. The bonds may build on yesterday’s gains.
(CSOB - Investment research)