Czech bonds inched higher yesterday, as the market was still optimistic due to a successful 14-year tender. A rebound of German Bunds helped too, but the Czech market reflected this positive development only partly.
Today the bonds may open on a stronger footing, as they might catch up the Bunds. The calendar isn’t interesting and no domestic event may affect the market in next 10 days. However, a strong koruna attacking its lifetime high may revive bets on an interest rate cut.
ČSOB - Investment Research