The Czech bonds experienced another quiet day on Monday. The absence of important domestic economic events and English bank holidays reduced trade volumes. The unclear political development around a new Czech cabinet had no influence on the bond market and the Czech papers closed near their morning values.
No important statistics are released today, the market should wait for the Thursday’s CNB meeting. We do not expect CNB stays on hold, nevertheless the governor’s comments should be of some interest to market especially if he will mention the CNB’s opinion to next year’s deficit proposal. However, till Thursday the euro zone markets might be the most important impetus for the Czech bonds again.
(CSOB - Investment research)