The Czech bonds found no important
incentives on the domestic scene. Therefore
they found their pattern in neighboring core
markets and together with Bunds went
down.
On Wednesday the Ministry of Finance sold
CZK 6 bn bonds 2.55/2010 in auction. The
market absorbed the whole amount without
any difficulties; the demand exceeded the
offer nearly twice. The result was slightly
surprising, the Czech market usually does
not show too much interest for this maturity
and another auction of the same paper and
the same amount is scheduled in two weeks.
No important events are scheduled today
and the Czech bonds should follow their
western counterparts again.
(CSOB - Investment research)