* FX up, lifted by global stocks
* Bond yields near lows after Polish, Czech auctions
* Poland did not sell bonds at top-up
(Adds bonds, updates markets)
BUDAPEST/WARSAW, April 21 (Reuters) - Central European
currencies rose on Wednesday, boosted by stock market gains
across the region while Czech and Polish debt sales attracted
strong demand.
The top-performing zloty <EURPLN=> led gains, adding 0.3
percent against the euro by 1359 GMT. The Romanian leu <EURRON=>
gained almost 0.3 percent and the forint <EURHUF=> 0.2 percent.
The Czech crown <EURCZK=> was little changed.
Czech and Polish bond tenders attracted healthy demand as
investors continued to snap up regional debt, which has pushed
yields to near historic lows in recent weeks.
Buy the Polish finance ministry failed to place any bonds at
a supplementary tender.
"If prices are lower on the secondary market, investors are
not keen to buy paper on the primary one," Maciej Slomka, chief
fixed-income dealer at Pekao bank said.
Poland sees its 2010 borrowing needs at 197 billion zlotys,
of which it had met 39 percent by the end of March.
The Polish central bank agreed to recalculate its 2009
profit, which will likely prove higher than previously seen.
That would bode well for Poland's borrowing needs as most of the
bank's profits are transferred to the state budget.
[]
Hungary's bonds posted modest gains ahead of an interest
rate decision on Monday, with the market widely expecting a 25
basis point cut.
"We expect the trend (of yield falls) to continue," one
Budapest-based fixed income trader said. "(In the short term) I
don't think that the central bank decision will move yields, the
cut is very much priced in."
A currency trader said the forint was unlikely to break out
of recent ranges ahead of a runoff election round due on Sunday.
The April 25 vote will decide whether poll winner Fidesz can
garner a two-thirds legislative majority, which would enable it
to pass extensive state reforms.
Hungary's central bank will discuss interest rates <NBHI>
one day after the vote and is widely expected to trim by another
quarter point to a new record low of 5.25 percent.
Analysts expect the forint to gain more, possibly prompting
the central bank and the government to try to weaken the unit.
[]
The Czech central bank's vice governor said on Wednesday he
could not rule out a further rate cut from the current record
low of 1 percent. []
The CEE region's economies are seen rebounding this year,
although analysts and officials expect the recovery to be
fragile as external factors may weigh.
The International Monetary Fund released revised growth
forecasts on Wednesday and now expects Central and Eastern
Europe to expand by 2.8 percent this year, up from 0.8 percent
seen previously []
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2009
Czech crown <EURCZK=> 25,284 25,277 -0,03% +4,09%
Polish zloty <EURPLN=> 3,867 3,879 +0,31% +6,13%
Hungarian forint <EURHUF=> 263,59 264,17 +0,22% +2,56%
Croatian kuna <EURHRK=> 7,251 7,252 +0,01% +0,8%
Romanian leu <EURRON=> 4,132 4,144 +0,29% +2,55%
Serbian dinar <EURRSD=> 99,23 99,39 +0,16% -3,38%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
3-yr T-bond CZ3YT=RR +30 basis points to 92bps over bmk*
7-yr T-bond CZ7YT=RR +1 basis points to +63bps over bmk*
10-yr T-bond CZ10YT=RR -1 basis points to +57bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR +2 basis points to +350bps over bmk*
5-yr T-bond PL5YT=RR +1 basis points to +289bps over bmk*
10-yr T-bond PL10YT=RR +1 basis points to +241bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR +2 basis points to +427bps over bmk*
5-yr T-bond HU5YT=RR +1 basis points to +364bps over bmk*
10-yr T-bond HU10YT=RR +1 basis points to +330bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1559 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 []
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(Reporting by Reuters bureaus, writing by Marton Dunai/Gergely
Szakacs, editing by Ron Askew, John Stonestreet)
