The Czech fixed market extended its gains as the bullish sentiment in global bond
markets kept its positive sentiment intact. Yields dropped almost along the whole
curve despite the mixed performance of the koruna. The only exception, which did
not see positive price action, was the very long end of the curve as the Finance Ministry
announced that there will be additional issue of 30Y benchmark (CZK 7 bn) during
the first quarter of this year.
Given the empty domestic calendar, the Czech bond market should focus on developments
in core bond markets, especially to the US eco calendar, though the EU
Commission’s interim economic forecasts for growth and inflation might grab some
attention too. At the same time, the short end of the curve will keep watching the domestic
FX market.