The small trade deficit and the dovish Minutes reversed the negative trend. Only 4 members of the CNB Board voted in favor of flat rates, while two were in favor of a rate cut. We weren’t supplied by another breaking news. The bank may keep rates unchanged, unless the koruna firms further. The CNB believes in a negative correction of the koruna. They foresee the rates may raise in the second half of the year. Today no item is on agenda, thus the market has to inspire abroad. Investors may wait for Wednesday, when the 14-year auction and the January inflation are due. Therefore the bonds may trade sideways.
(CSOB - Investment research)