Reuters
By Sandor Peto
BUDAPEST, April 12 () - Central European currencies and government bonds eased on Friday amid a flow of money into the euro, government bonds in the euro zone peripheries and European stocks.
In the past two years dollar selling usually supported Central European currencies and they were sold along with other emerging market assets when there was dollar buying.
"This is a breeze rather than a storm."
The euro gained in a move dealers said could have been driven by expected currency demand arising from a Japanese bank's plans to purchase a German multibillion-dollar aviation finance business.
Currencies in the European Union's eastern wing eased less than 0.1 percent against the euro, with the exception of the dinar , which firmed a shade to 117.91.
The forint tested three-month lows near 322.50 versus the euro before rebounding to 322.35.
If it pierces technical resistance at 322.80, it could weaken to 325, Erste analysts said in a note.
It fell in recent weeks after the National Bank of Hungary last month dropped its earlier guidance of gradual monetary tightening and inflation data released in the region this week showed a rise in inflation.
The Czech crown also eased slightly, to 25.63 versus the euro, but stayed near the three-week highs set after Czech figures showed a rise in inflation to 3 percent, the top of the Czech central bank's (CNB) target range.
"We continue to expect the CNB to deliver another rate hike in the second half of this year," KBC analysts said in a note.
By that time the bank will have a clearer picture on the scope of economic slowdown in Western European export markets, the analysts added.
Stocks in the region mostly tracked a rise for Western European peers.
Budapest's main equities index , mainly driven by a 1.5 percent rise in oil group MOL , set a record high.
Hungarian and Polish government bond yields tracked a rise in Bund yields, ignoring a decline in some bond yields in the euro zone's peripheries.
Romanian bonds yields, however, retreated after this week's earlier boost from a rise in inflation. The 10-year paper was trading around 4.93 percent, off Thursday's 10-week highs.
CEE MARKETS
SNAPSHOT
AT 1159 CET
CURRENCIES
Latest
Previous
Daily
Change
bid
close
change
in 2019
Czech crown
25.6300
25.6200
-0.04%
+0.30%
Hungary forint
322.3500
322.1900
-0.05%
-0.39%
Polish zloty
4.2863
4.2827
-0.08%
+0.08%
Romanian leu
4.7585
4.7550
-0.07%
-2.20%
Croatian kuna
7.4350
7.4335
-0.02%
-0.34%
Serbian dinar
117.9100
118.0000
+0.08%
+0.33%
Note: daily change
calculated from
1800 CET
Latest
Previous
Daily
Change
close
change
in 2019
Prague
1094.98
1091.0300
+0.36%
+10.99%
Budapest
42848.79
42693.52
+0.36%
+9.48%
Warsaw
2378.27
2374.97
+0.14%
+4.46%
Bucharest
8310.67
8328.02
-0.21%
+12.55%
Ljubljana
884.29
883.93
+0.04%
+9.95%
Zagreb
1809.04
1808.53
+0.03%
+3.44%
Belgrade
738.55
736.14
+0.33%
-3.04%
Sofia
573.65
579.03
-0.93%
-3.50%
BONDS
Yield
Yield
Spread
Daily
(bid)
change
vs Bund
change in
Czech Republic
spread
2-year
1.6410
-0.1880
+223bps
-19bps
5-year
1.6760
-0.0020
+208bps
-2bps
10-year
1.8310
0.0000
+181bps
-3bps
Poland
2-year
1.6650
0.0010
+226bps
+0bps
5-year
2.2410
0.0070
+264bps
-2bps
10-year
0.2820
-2.6280
+026bps
-265bps
FORWARD
RATE
AGREEMENT
3x6
6x9
9x12
3M interbank
Czech Rep
2.16
2.20
2.19
2.02
Hungary
0.35
0.52
0.70
0.16
Poland
1.75
1.75
1.75
1.72
Note: FRA quotes
are for ask prices
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
