CEE MARKETS-Investors eye Romanian government, Hungarian central bank
WARSAW, Aug 27 (Reuters) - Central European currencies remained under pressure on Tuesday as worries about global growth weighed on emerging-market assets, with the Romanian leu EURRON= slipping around 0.2% after the country's ruling coalition collapsed.
Elsewhere, the Hungarian forint EURHUF= was near recent lows before the National Bank of Hungary announced its rate decision at 1200 GMT. The bank was expected to leave its base rate HUINT=ECI unchanged at 0.9%.
Romania's ruling Social Democrats lost their small parliamentary majority on Monday after a junior ally quit government over policy, leaving them vulnerable to a confidence vote.
"There's bit of uncertainty related to the government's fate and the market now responds to that," said a dealer with a foreign bank in Bucharest.
The leu, bouncing around its lowest level this month, was the worst-performing currency in the region, down 0.21% against the euro at 0755 GMT to be bid at 4.7355. The Polish zloty EURPLN= was bid at 4.3676 against the euro, down 0.13% from Monday's close. The Czech crown EURCZK= was little changed at 25.784. The forint remained on soft ground.
"The forint moves on a weakening path, with the currency opening at 329.1 (per euro) this morning," Erste Investment analysts said in a note.
"This is a smaller technical level, however, the 330 mark could be much more important from a psychological aspect. If that were to fall, one could start worrying that the currency could suddenly head north (weaker)."
Polish bond yields fell for a second day in a row, after reports the government plans to move its budget out of deficit in 2020 for the first time in 30 years on Tuesday.
At 0859 GMT, the Polish 10-year yield PL10YT=RR was down 4 basis points at 1.898%.
"In Poland, there was also a noticeable narrowing of asset swap spreads, which in turn could be associated with the work being started on next year's budget," PKO Bank Polski analysts said in a note, "The lack of a deficit means much lower than expected Treasury securities issues on the primary market."
Czech 10-year yields CZ10YT=RR were little changed at 1.088%
Stocks traded lower, with Warsaw's WIG 20 .WIG20 down 0.31% and Prague's PX .PX index down 0.38% at 0936 GMT.
Stock markets have been hit by concerns about global trade and a slowdown in major economies.
CEE MARKETS
SNAPSHOT
AT 1131 CET
CURRENCIES
Latest
Previous
Daily
Change
bid
close
change
in 2019
Czech crown
EURCZK=
25.7850
25.7870
+0.01%
-0.30%
Hungary forint
EURHUF=
328.9000
329.0500
+0.05%
-2.38%
Polish zloty
EURPLN=
4.3610
4.3590
-0.05%
-1.64%
Romanian leu
EURRON=
4.7340
4.7288
-0.11%
-1.69%
Croatian kuna
EURHRK=
7.3950
7.3945
-0.01%
+0.20%
Serbian dinar
EURRSD=
117.7700
117.8050
+0.03%
+0.45%
Note: daily change
calculated from
1800 CET
Latest
Previous
Daily
Change
close
change
in 2019
Prague
.PX
1035.30
1039.3500
-0.39%
+4.94%
Budapest
.BUX
39481.66
39661.47
-0.45%
+0.88%
Warsaw
.WIG20
2091.67
2098.41
-0.32%
-8.12%
Bucharest
.BETI
9088.54
9044.48
+0.49%
+23.09%
Ljubljana
.SBITOP
857.67
857.88
-0.02%
+6.64%
Zagreb
.CRBEX
1880.31
1873.74
+0.35%
+7.52%
Belgrade
.BELEX15
748.63
747.28
+0.18%
-1.71%
Sofia
.SOFIX
574.04
574.66
-0.11%
-3.44%
BONDS
Yield
Yield
Spread
Daily
(bid)
change
vs Bund
change in
Czech Republic
spread
2-year
CZ2YT=RR
1.0730
-0.0030
+196bps
-1bps
5-year
CZ5YT=RR
0.8740
0.0300
+178bps
+3bps
10-year
CZ10YT=RR
1.0310
-0.0560
+171bps
-5bps
Poland
2-year
PL2YT=RR
1.5430
-0.0180
+243bps
-3bps
5-year
PL5YT=RR
1.6590
-0.0440
+257bps
-4bps
10-year
PL10YT=RR
1.8940
-0.0440
+257bps
-4bps
FORWARD
RATE
AGREEMENT
3x6
6x9
9x12
3M interbank
Czech Rep
CZKFRAPRIBOR=
2.09
1.89
1.72
2.14
Hungary
HUFFRABUBOR=
0.30
0.39
0.34
0.26
Poland
PLNFRAWIBOR=
1.70
1.66
1.62
1.72
Note: FRA quotes
are for ask prices
**************************************************************
(Reporting by Alan Charlish in Warsaw, Radu-Sorin Marinas in Bucharest, Jason Hovet in Prague, Gergely Szakacs in Budapest; editing by Larry King)
((alan.charlish@thomsonreuters.com; +48 22 653 9723;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.