* FX mixed, zloty leads losses after IMF rally
* Zloty still seen better positioned than peers
* Czech markets await Wednesday's debt tender
(updates throughout)
By Marius Zaharia
BUCHAREST, April 21 (Reuters) - The Polish zloty led losses
in emerging European currencies on Tuesday, dragged down by
worries about the region's economic outlook despite Monday's
better than expected industrial output data in Poland.
The Czech central bank and the new Hungarian government both
painted bleaker outlooks on Tuesday for their economies, seen
facing a painful slump this year.[] []
Poland is the only country in the region where many analysts
still see a chance for growth this year, especially after data
showing industrial output fell by a much less than expected 2
percent annually in March, compared with drops of around a fifth
for some peers []
Central and eastern European central banks are seen holding
fire in the near-term to protect their currencies, pummelled by
the global financial crisis.
"The latest data, higher wages too, clearly show there will
be no (Polish) rate cut this month, equity-neutral in our view,
while also providing some protection for the zloty," Chevreux
analysts said in a note.
Elsewhere in the region, the Romanian leu <EURRON=> edged
up 0.1 percent, as markets reopened after the orthodox Easter
holidays, while the Czech crown <EURCZK=> fell 0.2 percent.
"There has been a combination of bad news (globally) and
people are starting to sell risk again," a Prague dealer said.
In debt markets, Czech bonds were steady before a 10-year
bond issue on Wednesday, a big test for appetite on the long end
of the curve.
The rising appetite for risk in the past month has boosted
local bonds, with prices rising steadily mainly to the benefit
of shorter-date paper, but an uptick in money market rates has
limited gains, some dealers said.
The Czech Republic also plans to tap international markets
with a eurobond after credit spreads dropped. []
Polish and Hungarian bonds weakened in early trade, tracking
currencies.
----------------------MARKET SNAPSHOT-------------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2009
Czech crown <EURCZK=> 27.05 27.003 -0.17% -1.1%
Polish zloty <EURPLN=> 4.42 4.393 -0.61% -6.9%
Hungarian forint <EURHUF=> 299.25 299.33 +0.03% -11.93%
Croatian kuna <EURHRK=> 7.42 7.383 -0.51% -0.75%
Romanian leu <EURRON=> 4.23 4.245 +0.14% -5.3%
Serbian dinar <EURRSD=> 93.03 92.73 -0.32% -3.82%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond CZ2YT=RR +24 basis points to 215bps over bmk*
4-yr T-bond CZ4YT=RR -14 basis points to +192bps over bmk*
8-yr T-bond CZ8YT=RR -4 basis points to +294bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR +9 basis points to +410bps over bmk*
5-yr T-bond PL5YT=RR 0 basis points to +352bps over bmk*
10-yr T-bond PL10YT=RR -2 basis points to +302bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR -10 basis points to +902bps over bmk*
5-yr T-bond HU5YT=RR -20 basis points to +877bps over bmk*
10-yr T-bond HU10YT=RR -4 basis points to +873bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1224 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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emerging market news []
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(Reporting by Reuters bureaus; Writing by Marius Zaharia;
Editing by Ruth Pitchford)
