Thus it climbed into positive territory in the morning. However, the activity of the market participant was minimal, because every one waits for today’s inflation and tender. A drop of Treasuries and Bunds in the afternoon didn’t affect the Czech market significantly, therefore the bonds closed the session little changed. However the drop may push bond prices downward this morning. Today the above forecast January inflation may harm the bonds. Nevertheless, it didn’t change the prediction of flat rates in 5-month horizon. In the 14-year tender the government offers papers worth of CZK 6 bn. The auction might be well bid, as the market prefer long maturities. All in all, the bond might be falling today.
(CSOB - Investment research)