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CEE MARKETS-Most currencies fall as fears of second coronavirus wave weigh

    WARSAW, Oct 15 (Reuters) - Most Central European currencies
slipped on Thursday, as mounting worries about a second wave of
the coronavirus sapped risk appetite across the globe.
    The region has seen soaring infections, with the Czech
Republic, which has Europe's fastest growing infection rates,
reporting a record high number of cases on Thursday along with
Poland.
    "I think that the main reason is that the economic prospects
of the region have dimmed recently due to the COVID-19
pandemic," said Piotr Bartkiewicz, an economist at Pekao in
Warsaw.
    "Since investors are anticipating that western European
economies will slow down the currencies here need to compensate
for the reduced demand."
    At 0838 GMT the Polish zloty was 0.70% weaker
against the euro at 4.5490, the Czech crown was 0.22%
softer at 27.32 and the Hungarian forint lost 0.73% to
trade at 365.30.
    The Romanian leu was little changed at 4.8760.
    In Hungary, investors were eyeing a one-week deposit tender
of the central bank due later in the day, which according to a
morning note by Equilor, "could cause intensive movements in the
exhange rate of the forint."
    The forint could weaken ahead of the tender, as traders
might try and force the central bank to raise the interest rate
on the one-week deposit facility, analysts had said before.
    The bank raised the interest rate on the facility by
15 basis points to 0.75% on Sept. 24 to prevent an increase in
inflation risks, but has kept rates at this level since.

    Thursday's interest rate decision will be announced at 0950
GMT, with results of the tender due at 1300 GMT.
    Stock indices across Europe fell on pandemic fears and
fading hopes of fresh U.S. stimulus. In the CEE region, the main
indices in Prague, Budapest and Warsaw
were down between 1.5% and 1.9%.
    
    
                    CEE       SNAPSHO   AT                      
                    MARKETS   T        1038 CET           
                              CURRENC                           
                              IES                         
                              Latest   Previous  Daily    Change
                              bid      close     change   in
                                                          2020
 EURCZK=  Czech     <EURCZK=  27.3200   27.2600   -0.22%  -6.91%
          crown     >                                     
 EURHUF=  Hungary   <EURHUF=  365.300  362.6500   -0.73%  -9.35%
          forint    >               0                     
 EURPLN=  Polish    <EURPLN=   4.5490    4.5170   -0.70%  -6.43%
          zloty     >                                     
 EURRON=  Romanian  <EURRON=   4.8760    4.8770   +0.02%  -1.80%
          leu       >                                     
 EURHRK=  Croatian  <EURHRK=   7.5830    7.5785   -0.06%  -1.81%
          kuna      >                                     
 EURRSD=  Serbian   <EURRSD=  117.500  117.5800   +0.07%   +0.06
          dinar     >               0                          %
          Note:     calculated from              1800           
          daily                                  CET      
          change Latest   Previous  Daily    Change
                                       close     change   in
                                                          2020
 .PX      Prague               856.11  872.9400   -1.93%  -23.26
                                                               %
 .BUX     Budapest            32982.7  33496.67   -1.53%  -28.43
                                    9                          %
 .WIG20   Warsaw              1640.09   1670.26   -1.81%  -23.72
                                                               %
 .BETI    Buchares            8848.65   8880.06   -0.35%  -11.31
          t                                                    %
 .SBITOP  Ljubljan  <.SBITOP   831.71    835.41   -0.44%  -10.17
          a         >                                          %
 .CRBEX   Zagreb              1607.97   1611.72   -0.23%  -20.30
                                                               %
 .BELEX1  Belgrade  <.BELEX1   689.46    690.70   -0.18%  -14.00
 5                  5>                                         %
 .SOFIX   Sofia                425.49    425.96   -0.11%  -25.11
                                                               %
                                                                
                              Yield    Yield     Spread   Daily
                              (bid)    change    vs Bund  change
                                                          in
          Czech                                           spread
          Republic                                        
 CZ2YT=R    2-year  <CZ2YT=R   0.1020    0.0210   +087bp   +5bps
 R                  R>                                 s  
 CZ5YT=R    5-year  <CZ5YT=R   0.5680   -0.0400   +137bp   +0bps
 R                  R>                                 s  
 CZ10YT=            <CZ10YT=   1.0430    0.0280   +167bp   +8bps
 RR       10-year   RR>                                s  
          Poland                                                
 PL2YT=R    2-year  <PL2YT=R  -0.0170   -0.0360   +075bp   -1bps
 R                  R>                                 s  
 PL5YT=R    5-year  <PL5YT=R   0.4690   -0.0230   +127bp   +2bps
 R                  R>                                 s  
 PL10YT=            <PL10YT=   1.2460   -0.0230   +187bp   +3bps
 RR       10-year   RR>                                s  
                    FORWARD                                     
                              3x6      6x9       9x12     3M
                                                          interb
                                                          ank
          Czech                  0.27      0.26     0.29    0.35
          Rep       <PRIBOR=                              
                    >                                     
          Hungary                0.93      0.98     0.98    0.77
                                                          
          Poland                 0.17      0.16     0.15    0.22
                                                          
          Note:     are for ask                                 
          FRA       prices                                
          quotes                                          
          **********************************************        
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 (Reporting by Alan Charlish in Warsaw and Anita Komuves in
Budapest; Editing by Rashmi Aich)
  
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