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CEE MARKETS-Currencies ease after ECB signals tweak to stimulus
June 28, 2017 / 9:49 AM / in 6 months

CEE MARKETS-Currencies ease after ECB signals tweak to stimulus

    BUDAPEST, June 28 (Reuters) - Central European currencies eased on Wednesday
after comments from ECB President Mario Draghi on monetary tightening stoked
fears that the region's higher-yielding but riskier assets may lose some of
their appeal to investors.
    By 0809 GMT, the Czech crown and the Polish zloty were
both down 0.2 percent and the Hungarian forint recovered from early
lows above 310 against the euro to trade flat.
     "If worries over a tightening monetary policy in the euro zone continue to
occupy markets, the crown will stay under pressure in the coming days," CSOB
analysts said.
     The weakening comes before Czech rate-setters hold a policy meeting on
Thursday at which they are expected to hold rates near zero, where they have
been since 2012. 
    An analyst poll this week forecast the central bank's first rate hike is
getting closer and could come this year rather than next year as previously
expected.
    The leu held steady after gains posted in the wake of the
nomination of a new prime minister, raising hopes of an end to Romania's
political crisis.
    "The calmer political backdrop is helping the Romanian currency," ING
analysts said in a note. The prospect of political noise returning to "normal
levels" could support the leu in the near and medium term, they said.
                       CEE MARKETS        SNAPSHOT   AT  1009 CET               
                                          CURRENCIES                            
                                          Latest    Previous  Daily      Change
                                          bid       close     change     in 2017
 Czech crown                               26.3090   26.2580     -0.19%    2.65%
 Hungary forint                           309.8500  309.9450     +0.03%   -0.33%
 Polish zloty                               4.2275    4.2208     -0.16%    4.17%
 Romanian leu                               4.5614    4.5631     +0.04%   -0.58%
 Croatian kuna                              7.4150    7.4065     -0.11%    1.89%
 Serbian dinar                            121.0100  121.2300     +0.18%    1.93%
 Note: daily change    calculated from    previous  close at  1800 CET          
                                          STOCKS                                
                                          Latest    Previous  Daily      Change
                                                    close     change     in 2017
 Prague                                     975.89    976.00     -0.01%   +5.89%
 Budapest                                 35549.08  35645.77     -0.27%   +11.08
                                                                               %
 Warsaw                                    2337.08   2345.05     -0.34%   +19.98
                                                                               %
 Bucharest                                 8173.38   8204.71     -0.38%   +15.36
                                                                               %
 Ljubljana                                  797.60    796.79     +0.10%   +11.15
                                                                               %
 Zagreb                                    1871.47   1870.98     +0.03%   -6.18%
 Belgrade                                   709.46    712.30     -0.40%   -1.10%
 Sofia                                      698.71    697.12     +0.23%   +19.15
                                                                               %
                                          BONDS                                 
                                          Yield     Yield     Spread     Daily
                                          (bid)     change    vs Bund    change
                                                                         in
 Czech Republic                                                          spread
   2-year                                    0.073         0    +064bps    -1bps
   5-year                                    0.055      0.08    +032bps    +7bps
   10-year                                   0.959     0.063    +057bps    +3bps
 Poland                                                                         
   2-year                                    1.954    -0.045    +252bps    -5bps
   5-year                                    2.667     0.023    +293bps    +1bps
   10-year                                   3.304     0.039    +292bps    +1bps
                       FORWARD            RATE      AGREEMENT                   
                                          3x6       6x9       9x12       3M
                                                                         interba
                                                                         nk
 Czech Rep                                    0.35      0.44       0.52        0
 Hungary                                      0.19      0.25       0.28     0.15
 Poland                                     1.7575     1.795       1.83     1.73
 Note: FRA quotes      are for ask                                              
                       prices                                            
 
 (Reporting by Jason Hovet and Luiza Ilie; Editing by Louise Ireland)
  
 
 

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