PRAGUE, Sept 3 (Reuters) - The Hungarian forint and Czech crown rebounded on Thursday after steep drops in the previous session although some pressure remained on central European currencies as the U.S. dollar bounced back and COVID-19 pandemic fears lingered. The forint hit its weakest level since mid-April on Wednesday, a move sharpened by passing technical levels as central Europe weakened due to a rising U.S. dollar against the euro, the main reference currency for the region. Elsewhere, bond auctions were eyed in Poland and Hungary while stock markets gained with global equities as hopes of more stimulus tempered worries of rising COVID-19 infections. On currency markets, the forint rose 0.1% to 357.75 to the euro, off a low of 359.05 on Wednesday but still below levels around 354 that the currency started the week. Raiffeisen said it had revised its forint outlook weaker, mainly due to the huge economic decline expected this year amid the pandemic, a large budget deficit and the central bank's quantitative easing programme. But it said the forint traded with a risk premium. "The priced in risk premium is visible when looking at option-implied EUR/HUF volatilities and hints to some cheapness of the HUF, which is the main reason why we project the HUF to trade sideways from current levels," Raiffeisen analysts said. Hungary's central bank bought 40 billion forints worth of 10-year and 15-year government bonds from commercial banks at a weekly tender on Tuesday. Yields rose on Hungarian 5- and 10-year bonds sold at an auction on Thursday, with the latter at an average 2.35%. Poland was also holding a switch tender, at which it will buy back bonds due in 2020 and 2021 and sell longer dated bonds. The Polish zloty was a touch weaker at 4.42 per euro. Romania's leu was also unmoved and the crown gained 0.1% to 26.300 to the euro after touching as low as 26.363 on Wednesday. CEE SNAPSHO AT MARKETS T 1137 CET CURRENC IES Latest Previou Daily Change s bid close change in 2020 EURCZK Czech <EURCZK 26.3000 26.3375 +0.14% -3.30% = crown => EURHUF Hungary <EURHUF 357.750 358.340 +0.16% -7.44% = forint => 0 0 EURPLN Polish <EURPLN 4.4202 4.4186 -0.04% -3.71% = zloty => EURRON Romanian <EURRON 4.8445 4.8439 -0.01% -1.16% = leu => EURHRK Croatian <EURHRK 7.5370 7.5320 -0.07% -1.22% = kuna => EURRSD Serbian <EURRSD 117.500 117.600 +0.09% +0.06% = dinar => 0 0 Note: calculated from 1800 daily CET change STOCKS Latest Previou Daily Change s close change in 2020 .PX Prague 905.15 901.480 +0.41% -18.87% 0 .BUX Budapest 34821.2 34423.7 +1.15% -24.44% 6 0 .WIG20 Warsaw <.WIG20 1792.97 1785.44 +0.42% -16.61% > .BETI Buchares 9012.00 9010.36 +0.02% -9.67% t .SBITO Ljubljan <.SBITO 854.09 852.98 +0.13% -7.75% P a P> .CRBEX Zagreb <.CRBEX 1624.59 1624.60 -0.00% -19.47% > .BELEX Belgrade <.BELEX 693.24 692.54 +0.10% -13.53% 15 15> .SOFIX Sofia <.SOFIX 433.75 431.75 +0.46% -23.65% > BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic CZ2YT= 2-year <CZ2YT= 0.1610 0.0060 +085bp +1bps RR RR> s CZ5YT= 5-year <CZ5YT= 0.6840 -0.0030 +138bp +0bps RR RR> s CZ10YT <CZ10YT 1.0880 0.0060 +156bp +0bps =RR 10-year =RR> s Poland PL2YT= 2-year <PL2YT= 0.1490 0.0060 +084bp +1bps RR RR> s PL5YT= 5-year <PL5YT= 0.7130 -0.0120 +141bp -1bps RR RR> s PL10YT <PL10YT 1.3820 -0.0010 +185bp +0bps =RR 10-year =RR> s FRA 3x6 6x9 9x12 3M interba nk Czech <CZKFRA 0.37 0.39 0.44 0.34 Rep ><PRIBO R=> Hungary <HUFFRA 0.80 0.90 0.96 0.62 ><BUBOR => Poland <PLNFRA 0.24 0.22 0.23 0.23 ><WIBOR => Note: FRA quotes are for ask prices ******************************************** ****************** For related news and prices, click on the codes in brackets: All emerging market news Spot FX rates Eastern Europe spot FX Middle East spot FX Asia spot FX Latin America spot FX Other news and reports World central bank news Economic Data Guide Official rates Emerging Diary Top events Diaries Diaries Index (Reporting by Jason Hovet in Prague; Editing by Ramakrishnan M.)
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