The yields at the long tail of the Czech
curve went down on Friday, tracking the
development in the core markets.
Pessimistic figures coming from US
overweighed uncertainty around domestic
politics and fiscal outlook. Somewhat
different situation is at the short end of the
curve where weaker koruna and forthcoming
CNB meeting played in favor of higher
yields.
In our opinion the flattening of the Czech
yield curve might continue also at the
beginning of this week. We believe in the
possibility of further decrease in the yields at
the long end of the curve and more or less in
the stability at the short end of the curve.
(CSOB - Investment research)