* News on impending Greek aid activation lifts currencies
* Local bond markets show no major reaction
(Adds news about Greece, fixed income)
By Krisztina Than and Dagmara Leszkowicz
BUDAPEST/WARSAW, April 23 (Reuters) - Emerging Europe's
currencies trimmed their losses on Friday, rallying after
sources said debt-chocked Greece would request activation of an
EU/IMF-led aid package in the coming hours.
Prime Minister George Papandreou is expected to announce
activation of the package shortly, easing fears of a Greek
default .
"This is good information and if market players can be
confident about this (agreement), it should definitely provide
support for our region," said one Warsaw-based dealer.
Central and eastern European assets have not been
significantly impacted by Greece's debt woes so far, thanks to
the region's relatively buoyant growth outlook and low debt and
budget deficit levels.
However, worries over the heavily-indebted euro zone
periphery have dampened investor appetite for the region's
assets in recent days.
By 0916 GMT the leu <EURRON=> strengthened 0.2 percent
against the euro, while Hungary's forint <EURHUF=> edged higher
some 0.1 percent.
The Czech crown <EURCZK=> was slightly weaker, losing 0.1
percent against the euro after central banker Vladimir Tomsik
said on Thursday there was room to cut rates further and that a
recent rise in the crown threatened the country's inflation
target and growth prospects. []
The Polish zloty <EURPLN=> was 0.2 percent down versus the
euro. Dealers said the country's retail sales data, though much
better than expected, did not have a significant impact on the
currency.
"There was no reaction after the data," said another dealer
from Warsaw bank. "The data is not boosting the market because
everyone sees Poland's economy is doing well and all the
positive news has been already priced in."
Poland's retail sales rose 8.7 percent in March on an annual
basis and surged by more than 20 percent in monthly terms.
[]
The region's stocks extended their previous gains, with most
indices rising more than 1 percent, though the bond market has
not yet reacted to the Greek news.
Hungarian dealers said the market was still optimistic about
the outlook for the forint which could get a boost from Sunday's
run-off parliamentary elections if the centre-right Fidesz party
-- which won the first round -- extends its gains to the
two-thirds majority that would give it a mandate to implement
major reforms.
Hungary's central bank is expected to cut rates by another
25 basis points on Monday to a new all-time low of 5.25 percent.
[] []
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2009
Czech crown <EURCZK=> 25,397 25,393 -0,02% +3,63%
Polish zloty <EURPLN=> 3,885 3,879 -0,15% +5,64%
Hungarian forint <EURHUF=> 264,71 265,01 +0,11% +2,13%
Croatian kuna <EURHRK=> 7,257 7,256 -0,01% +0,72%
Romanian leu <EURRON=> 4,126 4,138 +0,29% +2,7%
Serbian dinar <EURRSD=> 98,79 99,57 +0,79% -2,95%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
3-yr T-bond CZ3YT=RR -1 basis points to 51bps over bmk*
7-yr T-bond CZ7YT=RR +2 basis points to +64bps over bmk*
10-yr T-bond CZ10YT=RR +1 basis points to +63bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR -1 basis points to +354bps over bmk*
5-yr T-bond PL5YT=RR -4 basis points to +295bps over bmk*
10-yr T-bond PL10YT=RR -2 basis points to +245bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1116 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
For related news and prices, click on the codes in brackets: All
emerging market news []
Spot FX rates
Eastern Europe spot FX <EEFX=> Middle East spot FX <MEFX=>
Asia spot FX <ASIAFX=> Latin America spot FX <LATAMFX=>
Other news and reports
World central bank news [] Economic Data Guide <ECONGUIDE>
Official rates [] Emerging Diary []
Top events [] Diaries [] Diaries Index []
(Reporting by Reuters bureaus, Writing by Krisztina
Than/Dagmara Leszkowicz; editing by John Stonestreet)
