* Hungary debt tender goes well, Romania auction eyed
* FX rebound broadly after Spain debt auction
(Adds Hungary tender, quote, updates prices)
By Marius Zaharia
BUCHAREST, June 17 (Reuters) - The forint jumped on Thursday after Hungary sold all the amount planned at a well-bid bond tender, while Romanian markets were waiting for the first debt sale after the government survived a no-confidence vote.
A well covered bond auction in Spain also eased some of the debt worries in the euro zone and improved risk appetite, helping central European currencies gain back most of the morning losses.
Hungary sold all its planned 50 billion forints worth of 3-, 5-, and 10-year bonds at its first such auction since sharp market falls in early June after government officials compared Hungary's debt position to that of Greece, in comments which the cabinet later said were exaggerated. [
]Yields rose sharply from previous tenders and were a touch up from Wednesday's fixing <HUBONDFIX>, but demand was more than twice the amount offered, improving market sentiment.
At 1016 GMT, Hungary's forint <EURHUF=> was 0.7 percent up on the day. The Polish zloty <EURPLN=> and the Romanian leu <EURRON=> were steady, while the Czech crown <EURCZK=> was a touch weaker, but off morning lows.
Romania tenders 600 million lei of 5-year bonds on Thursday, two days after the government narrowly survived a no-confidence vote over a package of painful wage and pension cuts.
The tender will measure how confident investors are that austerity measures, key for keeping Romania's IMF-led deal afloat, will be cleared by the Constitutional Court on June 24.
Romania has rejected bids at several tenders over the past month or accepted only a small part of the offers as investors -- worried about political risk, social pressure and legal challenges to spending cuts -- demanded higher yields.
Some dealers say Romania's tender could also be successful as the risk of an immediate government collapse was off the table, and mood improved after Hungarian and Spanish debt sales.
Others say the finance ministry will remain picky and wait for upward pressure on yields to subside. Dealers expect investors to demand yields of around 7.2 percent.
"They (the ministry) can still say no to yields if they want," one trader said, adding the ministry was probably hoping yields investors will ask for will not be over 7 percent.
Finance Minister Sebastian Vladescu told Reuters on Thursday he was confident the austerity package will overcome legal challenges and he was not worried over funding this year [
]
CZECH, POLISH BONDS MIXED
Polish bonds yields rose up to 8 basis points after Wednesday's 10-year bond tender showed demand was only a touch above the amount sold [
].Central bank Monetary Policy Council (MPC) member Elzbieta Chojna-Duch told Reuters in an interview the country's budget assumptions are overly optimistic, adding to worrying comments about fiscal discipline. [
]Yields on longer-dated Czech bonds dropped 2-5 basis points, with the benchmark 2019 bond <CZ1002471=> yield at a two-week low and the spread with a similar-dated German bond tightening 5 basis points to 155.
Sentiment on Czech debt improved after a 10-year bond tender on Wednesday attracted solid demand, even if yields rose [
]--------------------------MARKET SNAPSHOT-------------------- Currency Latest Previous Local Local
close currency currency
change change
today in 2010 Czech crown <EURCZK=> 25.724 25.665 -0.23% +2.31% Polish zloty <EURPLN=> 4.072 4.072 0% +0.79% Hungarian forint <EURHUF=> 277.98 279.97 +0.72% -2.74% Croatian kuna <EURHRK=> 7.21 7.21 0% +1.38% Romanian leu <EURRON=> 4.234 4.232 -0.05% +0.08% Serbian dinar <EURRSD=> 103.83 103.43 -0.39% -7.66% Yield Spreads Czech treasury bonds <0#CZBMK=> 2-yr T-bond CZ2YT=RR -8 basis points to 160bps over bmk* 7-yr T-bond CZ7YT=RR -4 basis points to +157bps over bmk* 10-yr T-bond CZ9YT=RR -7 basis points to +154bps over bmk* Polish treasury bonds <0#PLBMK=> 2-yr T-bond PL2YT=RR +1 basis points to +412bps over bmk* 5-yr T-bond PL5YT=RR +3 basis points to +375bps over bmk* 10-yr T-bond PL10YT=RR +6 basis points to +311bps over bmk* Hungarian treasury bonds <0#HUBMK=> 3-yr T-bond HU3YT=RR 0 basis points to +629bps over bmk* 5-yr T-bond HU5YT=RR +3 basis points to +581bps over bmk* 10-yr T-bond HU10YT=RR -2 basis points to +485bps over bmk* *Benchmark is German bond equivalent. All data taken from Reuters at 1316 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=> Thomson Reuters Equity Emerging Markets Europe Index (Total Return) <.TRXFLDEETU> 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 Marius Zaharia; Editing by Ruth Pitchford)