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CEE MARKETS-Forint, crown regain some ground; stocks rise

    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                                    
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 (Reporting by Jason Hovet in Prague; Editing by Ramakrishnan
M.)
  
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