The yields on the Czech bond market didn’t follow the trend on the core markets yesterday

The yields on the Czech bond market didn’t follow the trend on the core markets and changed only slightly yesterday. The market expects that the CNB will lag behind the ECB actions and so the interest rate differential should widen in June. The market bet on the rate hike in coming months but the CNB willingness to increase its rates is actually at the minimum. None of the board members vote for hike and moreover the Governor was talking about stability.

Today the market will watch the core markets trends – especially after the US labour market figures.

(CSOB - Investment research)