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CEE MARKETS-Currencies firm on upbeat global mood, industrial data

    WARSAW, Oct 1 (Reuters) - Central European currencies firmed
on Thursday as improving global sentiment and some moderately
positive industrial data helped them shake off losses incurred
earlier in a week of high volatility.
    The Polish zloty, in particular, has been on a
rollercoaster ride this week, posting its biggest intraday gain
since May on Tuesday after previously weakening on concerns
about rising coronavirus cases and the country's relations with
the European Union.
    "I think investors decided it was time for a correction,"
said Krystian Jaworski, senior economist at Credit Agricole in
Warsaw.
    "After the debate between Biden and Trump we saw an
increased possibility of Biden winning so this also supported
risk appetite. Higher risk appetite and correction both those
things contributed to the strengthening of the currencies."
    At 0923 GMT, the Polish zloty was 0.41% firmer against the
euro at 4.5115, the Czech crown was 0.26% stronger at
26.98, while the Hungarian forint gained 0.71% to
trade at 360.90.
    In Hungary, investors were waiting for the central bank's
one-week deposit tender.
    The bank holds the tender every Thursday and sets the
interest rate weekly. The bank unexpectedly raised the interest
rate on the facility last Thursday by 15 basis points to 0.75%,
which helped buoy the forint.
    PMI readings in Poland and the Czech Republic showed
marginal improvements in the country's manufacturing sectors,
while in Hungary the reading fell below the 50.0 mark that
separates growth from contraction.
    Czech bonds ticked slightly lower, taking in stride Finance
Ministry plans to propose a 320 billion crown ($13.87 billion)
budget gap next year - equal to about 5.5% of GDP - which is
larger than some anticipated.
    The figure still does not include a planned personal income
tax cut worth about 70 billion crowns. 
    Czech 10-year bond yields were at 0.854%, while
Polish 10-year yields fell 1 basis point to 1.303%
    Stocks were mixed, with Prague's PX index falling 1%, while
in Budapest the main index rose 0.74%. Warsaw's WIG 20
index was flat.
    
    
                     CEE       SNAPSHO   AT                     
                     MARKETS   T        1123 CET          
                               CURRENC                          
                               IES                        
                               Latest   Previous  Daily   Change
                               bid      close     change  in
                                                          2020
 EURCZK=  Czech      <EURCZK=  26.9800   27.0500   +0.26  -5.74%
          crown      >                                 %  
 EURHUF=  Hungary    <EURHUF=  360.900  363.4500   +0.71  -8.24%
          forint     >               0                 %  
 EURPLN=  Polish     <EURPLN=   4.5115    4.5300   +0.41  -5.65%
          zloty      >                                 %  
 EURRON=  Romanian   <EURRON=   4.8740    4.8740   +0.00  -1.76%
          leu        >                                 %  
 EURHRK=  Croatian   <EURHRK=   7.5605    7.5605   +0.00  -1.52%
          kuna       >                                 %  
 EURRSD=  Serbian    <EURRSD=  117.500  117.6000   +0.09   +0.06
          dinar      >               0                 %       %
          Note:      calculated from              1800          
          daily                                   CET     
          change Latest   Previous  Daily   Change
                                        close     change  in
                                                          2020
 .PX      Prague                859.51  868.3300  -1.02%  -22.96
                                                               %
 .BUX     Budapest             33167.7  32923.53   +0.74  -28.03
                                     0                 %       %
 .WIG20   Warsaw               1712.63   1712.73  -0.01%  -20.35
                                                               %
 .BETI    Bucharest            9014.67   9007.20   +0.08  -9.65%
                                                       %  
 .SBITOP  Ljubljana  <.SBITOP   853.24    846.20   +0.83  -7.84%
                     >                                 %  
 .CRBEX   Zagreb               1612.76   1608.54   +0.26  -20.06
                                                       %       %
 .BELEX1  Belgrade   <.BELEX1   691.06    692.93  -0.27%  -13.80
 5                   5>                                        %
 .SOFIX   Sofia                 427.88    427.55   +0.08  -24.69
                                                       %       %
                                                                
                               Yield    Yield     Spread  Daily
                               (bid)    change    vs      change
                                                  Bund    in
          Czech                                           spread
          Republic                                        
 CZ2YT=R    2-year   <CZ2YT=R   0.0630   -0.0280   +076b   -3bps
 R                   R>                               ps  
 CZ5YT=R    5-year   <CZ5YT=R   0.4760   -0.0570   +118b   -6bps
 R                   R>                               ps  
 CZ10YT=    10-year  <CZ10YT=   0.8540   -0.0070   +137b   -1bps
 RR                  RR>                              ps  
          Poland                                                
 PL2YT=R    2-year   <PL2YT=R   0.0590   -0.0300   +076b   -3bps
 R                   R>                               ps  
 PL5YT=R    5-year   <PL5YT=R   0.5670   -0.0390   +127b   -4bps
 R                   R>                               ps  
 PL10YT=    10-year  <PL10YT=   1.3030   -0.0100   +182b   -1bps
 RR                  RR>                              ps  
                     FORWARD                                    
                               3x6      6x9       9x12    3M
                                                          interb
                                                          ank
          Czech Rep               0.30      0.30    0.35    0.35
                     <PRIBOR=                             
                     >                                    
          Hungary                 1.04      1.06    1.11    0.77
                                                          
          Poland                  0.19      0.18    0.18    0.22
                                                          
          Note: FRA  are for ask                                
          quotes     prices                               
          **********************************************        
          ****************                                
    
    
    

 (Reporting by Alan Charlish in Warsaw, Jason Hovet in Prague
and Anita Komuves in Budapest; Editing by Aditya Soni)
  
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