Czech bonds extended their losses in soft
trading yesterday. The yield curve flattened
in bullish as the weaker Czech currency
cautiously activate rate hike hopes.
Today the key domestic event is an auction
of the government bond benchmark
3.8/2015. We expect the whole offered
amount (CZK 7 bn) should be easily
absorbed. As concerns today’s price action
the bonds, particularly at the long end,
should follow German Bunds. The front end
should also monitor a CZK development.
ČSOB Investment Research