* Polish GDP data due 0800 GMT
* Czech yields set for moderate rise on rate hike comments
By Marius Zaharia
BUCHAREST, Aug 30 (Reuters) - The zloty started little
changed on Monday ahead of the release of second-quarter GDP
data, expected to provide further evidence of Poland's economic
outperformance in central Europe.
Analysts expect the only European economy that has avoided
recession last year to have grown by 3.2 percent on the year in
April-June, in line with official estimates. []
"It is likely to become obvious once again that Poland is in
a relatively strong economic position," Commerzbank said in a
morning note. "A positive surprise today would obviously support
the zloty."
At 0715 GMT, the zloty <EURPLN=> traded at 3.975 per euro,
around Friday's close.
The Czech crown <EURCZK=> was down 0.3 percent, while bond
yields looked set for a moderate rise after a third member of
the central bank's seven-member policy board spoke in favour of
a rate hike over the weekend. []
Robert Holman told weekly Tyden that the bank would likely
raise the main interest rate by 25 basis points by the end of
this year or early in 2011, bringing it into line with the
European Central Bank's main rate.
"At the moment everyone is waiting for (Governor Miroslav)
Singer to make comments," said a Prague fixed-income dealer.
"But I would expect (market) rates to go higher on Holman's
comments."
The 2-year interest rate swap (IRS) has ticked up since
hitting a 3-month low last week, rising to around 1.58 percent
from 1.53 percent -- still off an August high of 1.65 percent.
The yield on the 9-year benchmark <CZ1002471=> is still
hovering around a lifetime low of 3.189 percent, down almost a
percentage point since June as it tracks western peers' yields
lower, backed by government austerity pledges.
Hungary's forint <EURHUF=> fell 0.2 percent, extending last
week's losses as the government ruled out a new aid deal with
the International Monetary Fund, raising concerns about its
finances [].
Romania's leu <EURRON=> was virtually flat.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 24.762 24.698 -0.26% +6.28%
Polish zloty <EURPLN=> 3.975 3.972 -0.08% +3.25%
Hungarian forint <EURHUF=> 283.51 282.95 -0.2% -4.64%
Croatian kuna <EURHRK=> 7.273 7.28 +0.1% +0.5%
Romanian leu <EURRON=> 4.238 4.24 +0.05% -0.01%
Serbian dinar <EURRSD=> 104.9 104.963 +0.06% -8.6%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond CZ2YT=RR +13 basis points to 120bps over bmk*
7-yr T-bond CZ7YT=RR +2 basis points to +112bps over bmk*
10-yr T-bond CZ9YT=RR +6 basis points to +113bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 0815 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaus, writing by Marius Zaharia;
Editing by Patrick Graham)
