The Czech yield curve shifted down from 2-
5 bps in a bullish steepening move. Thanks
to surprisingly low inflation and a strong
koruna the markets continue to scale back
rate hike expectations, which is the main
supporter at the short end of the curve.
Today the trade balance should hardly have
any impact on the bond market. The
attention should be focused more on the
auction of 15-year bond in total volume of 7
billion koruna. Surprisingly high demand for
new 30-year bond and overall positive
sentiment on global bond markets indicates
a good result in today’s auction.
ČSOB - Investment Research