As expected the Czech bonds ignored current account yesterday and found its pattern in core markets movement down. Nevertheless, the Czech market closed sooner and could not follow euro zone afternoon return. Trade volume was above average and yield curve increased along the whole length.
Friday is a sig nificant day for Czech papers. GDP, industrial production, inflation and unemployment together with CNB minutes are due today. The released inflation figures surprised on the upside as year-on-year inflation reached 3.1 % (versus 2.9% of market consensus). This together slightly hawkish CNB Minutes should send a negative signal to the short end of the yield curve.
(CSOB - Investment research)