No important economic events were due
yesterday and the Czech bonds headed
south inspired by core market movements.
The trading volume was slightly higher then
in previous days and the yield curve
steepened.
Today‘s construction output should hardly
influence the Czech market. However, the
most important event is the CZK 6 bn.
2.55/2010 bond auction today. The auction
might meet only weak demand. The same
paper was issued two weeks ago. Even
when the August auction was sold without
any problems, the new issuance calendar
revealed a week ago offers the same paper
at the beginning of November again.
Therefore we are afraid that today’s auction
could not find a sufficient demand.
Nevertheless, the main market impetus may
be the core market again.
(CSOB - Investment research)