Czech fixed income markets tracked
positive developments in the core bond
markets and in the domestic forex markets
and yields (rates) dropped along the whole
yield curve. Moreover, the Czech MinFin
successfully placed its 2Y benchmark in the
primary market as the average accepted
yield was 10 bps lower than in the previous
auction fourteen days ago.
It is worth to add
that the market completely shrugged off the
information that the central government
budget fell into red as it recorded a CZK
12.7 bn deficit in the Jan-Oct period after
CZK 1.5 bn surplus in the previous month.
Today the domestic economic calendar is
empty, thus the developments in eurozone,
specifically the ECB meeting and comments
of ECB president Trichet will be decisive for
the Czech FI market.
(CSOB - Investment research)