(Adds details, fixed income)
PRAGUE, Sept 9 (Reuters) - The Czech crown and Hungarian
forint edged higher against the euro on Tuesday although a
strong dollar and growth concerns capped gains on emerging
European currencies.
The crown <EURCZK=> rose 0.5 percent to 24.793 per euro,
bouncing back from a three-month low hit on Monday after failing
to break above the psychological 25.00 level.
"(The crown) failed to break 25.00 for the fifth time in a
row, and this made traders think twice about their long
positions," said a Prague trader.
The forint <EURHUF=> added 0.5 percent to 240.25 against the
euro by 0823 GMT, but unable to move below the key 240 level.
"The forint is comfortably above 240 and I don't think we're
going back under it," a trader said.
In other trade, Poland's zloty <EURPLN=>, the leading faller
on Monday, was down 0.1 percent at 3.471 per euro, while
Romania's leu <EURRON=> was up 0.1 percent at 3.585 to the euro.
The Croatian kuna <EURHRK=> slipped to 7.135 per euro from
7.131, and Serbia's dinar <EURRSD=> edged higher to 76.42 from
76.55 against the euro.
Dealers said the strong dollar and growth concerns in the
region continued to weigh on currencies.
The dollar's recent rally against the euro, the region's
main reference, has caused investors to shift positions to the
greenback and away from emerging assets as Europe's growth
outlook dims.
On Monday, the dollar firmed after news of a U.S. bailout
for mortgage giants Freddie Mac and Fannie Mae, and hit a
one-year peak in Tuesday trade.
"The market's optimism evaporated very quickly on Monday
which indicates that the overall mood remains fairly gloomy," a
Budapest trader said.
On Tuesday, Hungarian bond yields slipped 2-5 basis points,
while Polish bonds steadied with investors eyeing a Wednesday
tender.
----------------------MARKET SNAPSHOT-------------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2008
Czech crown <EURCZK=> 24.793 24.925 +0.53% +6.43%
Polish zloty <EURPLN=> 3.471 3.468 -0.09% +3.6%
Hungarian forint <EURHUF=> 240.250 241.440 +0.49% +4.98%
Croatian kuna <EURHRK=> 7.135 7.131 -0.06% +2.61%
Romanian leu <EURRON=> 3.585 3.589 +0.11% -0.13%
Serbian dinar <EURRSD=> 76.420 76.551 +0.17% +2.97%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
3-yr T-bond CZ3YT=RR -3 basis points to 2bps over bmk*
5-yr T-bond CZ5YT=RR -6 basis points to +20bps over bmk*
10-yr T-bond CZ9YT=RR +13 basis points to +46bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR -4 basis points to +228bps over bmk*
5-yr T-bond PL5YT=RR -2 basis points to +222bps over bmk*
10-yr T-bond PL10YT=RR 0 basis points to +198bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR -8 basis points to +515bps over bmk*
5-yr T-bond HU5YT=RR -6 basis points to +489bps over bmk*
10-yr T-bond HU10YT=RR -2 basis points to +399bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1021 CET.
Currency percent change calculated from the daily domestic
close at 1500 GMT.
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(Reporting by Reuters bureaus, writing by Jason Hovet, editing
by Mike Peacock)
