Czech bonds just partly tracked negative
price action seen in core bond markets as
the whole yield curve negligibly shifted up by
1 bps. Given the stable koruna the trading
on the money market was very slow and
FRA rates closed almost unchanged.
While there is room for some delayed
reaction, which would represent an aim of
the Czech market catch up Friday’s
developments in core bond markets, the
domestic market will probably focus on
upcoming macro data in the US and EMU.
At the same time it is worth noting that CNB
Board members have the last chance to
bring some comments on a monetary policy
ahead of the next CNB’s meeting scheduled
for next Thursday. Thus, if we do not hear
any hawkish comment this week, we think
that it will indicate that CNB signals it will not
hike next week.
(CSOB - Investment research)