* Polish and Czech bonds attract robust demand
* Polish bond yields down, Czech yields up after tenders
(Adds topup, finance ministry official, Czech tender)
By Dagmara Leszkowicz
WARSAW, Feb 10 (Reuters) - Poland sold all 2-year bonds on
offer at primary and supplementary tenders and the Czech
Republic placed 3.5 billion crowns of 15-year bonds on
Wednesday, both attracting robust demand that helped to ease
concerns over emerging Europe's debt woes.
Poland's finance ministry sold a total of 6.6 billion zlotys
worth of its OK0712 bonds maturing in 2012. Investors' demand
reached 17.7 billion zlotys for the paper.
The Czech Finance Ministry sold a total of 3.5 billion
crowns of bonds maturing in 2024. Investors bid a total of 13.7
billion crowns for the 15-year paper.
In response to hefty demand, yields of the Polish benchmark
bonds fell by 3-5 basis points across the curve to 4.95 percent
on two-year papers and dealers said the tender also boosted
appetite for longer-dated papers.
By contrast, the yield on the Czech 15-year bond was a touch
up at 5.163/067 from 5.144/000 seen before the primary auction.
"It's over-liquidity at the short-end (of the curve) that
made the tender so successful," said Krzysztof Izdebski, a
dealer at PKO BP. "When investors saw how good the tender was,
they started also to buy five- and 10-year papers."
He also said the auction was supported by the rising zloty
and improving sentiment amid comments on a possible aid package
for troubled Greece.
A Polish finance ministry official said the succesful tender
showed Poland was "immune" to the worries over heavily indebted
countries in the euro zone periphery.
"Our domestic debt market is stable, that means foreign
capitals flows into the market as well," Piotr Marczak, head of
the finance ministry's debt department told Reuters.
Dealers in the Czech Republic said the 15-year bonds tender
attracted more foreign investors than domestic ones.
"A big move in Greek and EU-peripheral yields was probably
behind this. There are continuing stories of Greece being bailed
out soon, so the market started buying risk assets today," said
Dalimil Vyskovsky, a trader at Komercni Banka.
Market worries over rising budgets and debt in shakier euro
zone states such as Greece have put pressure on central European
bonds and other assets in the past week.
But analysts said Poland, Czech Republic and other
neighbouring countries are in better fiscal shape than the euro
zone's weaker states and government bond yields in the region
have not jumped at the pace seen in Greece, Portugal or Spain.
Poland already met more than 16 percent of its borrowing
needs for 2010 at the end of January.
For detail of the Polish tender please double click on
[]
For a table with the Czech auction click []
(Additional reporting by Jason Hovet in Prague; Editing by Andy
Bruce)
