There was no domestic event, thus the market looked at core markets. Initial gains of Bunds and Treasuries pushed Czech bonds higher, but later drop of core markets made also Czech bonds to pare some gains. Nevertheless, usual early end of Czech session on Friday prevented any significant drop of the market. Nevertheless Czech bonds may open on weaker footing today due to late Friday’s decline of core markets. There are no important data ahead us this week, but central banker comments before the policy meeting may drive the market. A strong koruna raises chance for another interest rate cut, but increase in euro and dollar yields may outweigh that.
(CSOB - Investment research)