Yesterday, the Czech bond market experienced lower activity due to holidays in a few European countries. The main domestic action, the CNB meeting did not surprise, board members were unanimous to keep rates on hold. Later the CNB governor Mr. Tuma declared at a conference that rates might stay unchanged for the next 1–4 months and that the next move should be up. However, the market reaction to the CNB decision and the conference was negligible. At the end of the session the bonds went up at the shorter end of the yield curve and stayed unchanged at the longer end.
No domestic events are expected today. Even the next week has no bond market incentives, only the bond issuance calendar for the third quarter will be published in the middle of the week, however with no direct impact on bond trading. Thus, today’s bond movement should be influenced by euro zone development again.
ČSOB