(Changes dateline, new throughout)
BUDAPEST, Sept 26 (Reuters) - Emerging European currencies
eased against the euro on Friday and were stuck in tight ranges
as investors stayed on the sidelines, eyeing the fate of the
stalled U.S. financial bailout plan.
The Polish zloty <EURPLN=> headed 0.84 percent lower, and
traded at 3.363 to the euro, while the Hungarian forint
<EURHUF=D2> was down 0.1 percent at 240.20.
"The forint was stuck in a tight range between 240 and
241.20 ... as investors are on the sidelines, and the market is
watching global developments," a Budapest-based currency dealer
said, adding that relatively small flows were moving the market.
"As long as the situation in the U.S. is not solved, it's
basically buy on dips (if the forint firms to 240) and sell
above 241," he added.
The Czech crown <EURCZK=> was little changed around the
24.40 level where it weakened to earlier in the week ahead of
the central bank's policy meeting on Thursday.
Markets in the region remained tense as pressures mounted on
U.S. lawmakers to agree on a $700 billion financial rescue plan.
"Today we've clearly seen some risk aversion in markets,"
said Jon Harrison, foreign exchange strategist with Dresdner
Kleinwort in London.
"It's just a question of waiting for the outcome of (the
plan), which will be a big driver next week," he said.
The Czech central bank left interest rates unchanged on
Thursday, following similar moves by the Polish and Romanian
banks. Hungary's central bank is seen holding fire on interest
rates when it meets on Monday.
Hungarian bonds were hectic in a choppy market.
"The market is hysterical and unstable, if there is some
flow, buy or sell, people are running after it," a trader said.
"A foreigner was bidding the 2012/C today...while London
players were selling 2011/C papers," he added.
Elsewhere in the region, Romania's leu <EURRON=> inched down
from Thursday's domestic close to 3.684 to the euro and Serbia's
dinar <EURRSD=> lost 0.36 percent to 76.613 per euro.
Croatia's kuna <EURHRK=> was unmoved at 7.103 after a boost
on Thursday from a central bank move to tighten rules on
mandatory reserves [].
----------------------MARKET SNAPSHOT-------------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2008
Czech crown <EURCZK=> 24.384 24.430 +0.19% +7.97%
Polish zloty <EURPLN=> 3.363 3.335 -0.84% +6.60%
Hungarian forint <EURHUF=> 240.230 240.120 -0.05% +4.99%
Croatian kuna <EURHRK=> 7.103 7.106 +0.04% +3.05%
Romanian leu <EURRON=> 3.684 3.675 -0.24% -2.90%
Serbian dinar <EURRSD=> 76.613 76.338 -0.36% +2.73%
All data taken from Reuters at 1538 CET.
Currency percent change calculated from the daily domestic
close at 1500 GMT.
Serbian dinar <EURRSD=> 76.538 76.9 +0.47% +2.82%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
3-yr T-bond CZ3YT=RR +15 basis points to 18bps over bmk*
5-yr T-bond CZ5YT=RR +11 basis points to +12bps over bmk*
10-yr T-bond CZ9YT=RR +5 basis points to +29bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR +17 basis points to +267bps over bmk*
5-yr T-bond PL5YT=RR +14 basis points to +222bps over bmk*
10-yr T-bond PL10YT=RR +7 basis points to +187bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR +14 basis points to +558bps over bmk*
5-yr T-bond HU5YT=RR +11 basis points to +512bps over bmk*
10-yr T-bond HU10YT=RR +5 basis points to +377bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1710 CET.
Currency percent change calculated from the daily domestic
close at 1500 GMT.
(Reporting by Reuters bureaus, writing by Krisztina Than,
editing by Stephen Nisbet)
