Even yesterday Czech bonds copied the movement on euro zone markets. However, Wednesday’s price action was not so intensive as on neighboring markets and even yesterday’s decline was moderate only. Today’s construction output has hardly any influence on the bond trading. The Czech market could find no other incentives home today and should follow a euro zone development again. Nevertheless, positive Czech fundamental data should modify the foreign influence at the short end of the curve and slightly smooth the global bearish sentiment.
(CSOB - Investment research)