Today, most of the Czech bond investors
will look for the CNB’s interest rate decision.
After a surprisingly sharp fall of inflation in
October and the series of recent dovish
comments from various central bankers
rates should stay unchanged.
The press
conference might bring further dovish
comments from governor Zdenek Tuma. He
could indicate that the risks to the prognosis
are clearly skewed to the downside. Hence
the press conference may play in favor of
the short maturities. However the space
for further gains seems to be rather
limited.
(CSOB - Investment research)