* Zloty eases, stocks hold near highs in crash aftermath
* Crown closes in on 7-month high after current account data
* Forint, bonds extend gains after clear Fidesz poll win
(Addds bonds, quote, data)
By Jason Hovet
PRAGUE, April 13 (Reuters) - The Polish zloty inched lower
on Tuesday, with investors watching moves to fill the central
bank vacuum created by the death of its governor, while the
Hungarian forint and bonds extended a rally after a sweeping
centre-right election win.
Polish markets have held up following the Saturday crash of
a government plane that killed President Lech Kaczynski, central
bank governor Slawomir Skrzypek, and other senior officials.
The Polish stock market <> hovered at its highest
level since before the financial crisis swept through the region
in September 2008, trading a touch lower on Tuesday.
Central European assets have jumped in value this year, as
the region's better growth prospects and largely stable public
finances have attracted investors scared away from the euro zone
periphery by Greece's debt crisis.
Strategists expect that while currencies may retreat from
highs in the short term, they will post gains this year.
On Tuesday, the Czech crown <EURCZK=> attacked a seven-month
high following data showing a current account surplus just below
market expectations. []
The zloty <EURPLN=>, central Europe's fastest rising
currency this year with a 6 percent gain, slipped 0.5 percent
lower by 0907 GMT to give up modest gains from Monday, bidding
at 3.883 per euro.
Analysts say Poland's strong economic fundamentals have
helped reassure investors following the weekend crash, and
officials have moved quickly to fill key posts. []
The Polish central bank's acting head, Piotr Wiesiolek, will
chair sessions of the rate-setting Monetary Policy Council (MPC)
until a new governor has been chosen, and he will also be able
to vote on monetary policy. []
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* For stories on the Polish crash and its aftermath please
double click on []
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The central bank had intervened on markets for the first
time in 10 years last Friday to knock the zloty from a 16-month
peak, and analysts say markets may try to test the bank again,
while the unit's firming pace will cool for now.
"A test of NBP intervention policy is still possible this
month, and we do not exclude a move below 3.80/euro on a 1-3
month horizon," ING analyst Mateusz Szczurek said in a note.
HUNGARIAN RATE VIEW UNCHANGED
Hungarian markets continued a strong rally since Sunday's
first round of elections that brought a sweeping victory for
centre-right Fidesz party. [] []
The forint <EURHUF=> rose 0.1 percent. Bond yields -- a day
after their biggest daily fall in eight months -- dipped, with
the 5-year bond yield at a 4-1/2 year trough.
Lower supply and expectations of rates cuts have helped spur
a bond rally that has shaved 140-165 basis points from bond
yields this year. Analysts said rate cuts could continue despite
a higher than expected March inflation reading released on
Tuesday. [] []
On Monday, Hungary's next prime minister Viktor Orban set
tax cuts and growth as priorities for his party, which was close
to getting an important two-thirds majority in the second round
at the end of the month that will help it push through vital
reforms for the IMF-aided country. []
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 25.164 25.168 +0.02% +4.59%
Polish zloty <EURPLN=> 3.883 3.863 -0.52% +5.69%
Hungarian forint <EURHUF=> 264.71 265.00 +0.11% +2.13%
Croatian kuna <EURHRK=> 7.257 7.261 +0.06% +0.72%
Romanian leu <EURRON=> 4.137 4.124 -0.31% +2.43%
Serbian dinar <EURRSD=> 99.479 99.65 +0.17% -3.62%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
3-yr T-bond CZ3YT=RR -5 basis points to 63bps over bmk*
7-yr T-bond CZ7YT=RR +1 basis points to +71bps over bmk*
10-yr T-bond CZ10YT=RR -6 basis points to +62bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR +1 basis points to +345bps over bmk*
5-yr T-bond PL5YT=RR 0 basis points to +293bps over bmk*
10-yr T-bond PL10YT=RR 0 basis points to +242bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR -4 basis points to +426bps over bmk*
5-yr T-bond HU5YT=RR -3 basis points to +366bps over bmk*
10-yr T-bond HU10YT=RR -3 basis points to +338bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1107 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaus, writing by Jason Hovet, editing
by Mike Peacock/Ruth Pitchford)
