Given the empty calendar, the market was influenced by the selling sentiment in eurozone. The short end of the yield curve stayed without significant changes as next interest rate hike in eurozone is probably coming sooner than in the Czech Republic. The yield on 2Y bond stayed unchanged at 2.47% and that one on 10Y bond rose by 6 bp up to 3.47%.
Today, the main market mover should be a reaction of the core markets on the ECB’s rate decision and especially following press conference. Nevertheless we believe there is not much space for further losses in the Czech market.
(CSOB - Investment research)