An absence of any Czech incentives made Czech bonds to copy euro zone movements yesterday. Bonds opened the day aiming south, later changed the direction and partly erased previous losses. We do not expect any important action on the domestic market today. However, the next week brings CNB meeting on Thursday. The market does not count with any rate change, yet the governor’s commentary might influence investor’s behavior. The strong Czech currency coupled with low inflation pressures do not activate speculations about rate increase, therefore the Czech market will be inspired by a euro zone development today.
(CSOB - Investment research)