* FX, stocks up a touch
* Intervention risk remains
* Hungarian, Romanian bond sales watched
(Adds bonds)
PRAGUE, April 22 (Reuters) - Central European currencies
held firmer on Thursday despite rising worries over Greece's
debt crisis, while markets were watching for Hungarian and
Romanian bond sale results after strong auctions in the region
recently.
The Hungarian forint <EURHUF=> edged up 0.2 percent, the
Polish zloty <EURPLN=> inched toward a one-week high, and the
Czech crown <EURCZK=> steadied below the 25.300 per euro level
as rising stock markets added some support.
The cost of insuring Greek debt rose to a new record high on
Thursday, but central European assets -- backed by the region's
better growth outlook and lower debt loads -- have stayed mostly
immune to the problems of the debt-laden euro zone periphery.
Demand was double the offer at Czech and Polish bond tenders
on Wednesday as investors continued to snap up regional debt,
which has pushed yields to near historic lows this month.
Hungary and Romania, where falling interest rates have
helped support bond markets, hold auctions on Thursday.
Hungarian results were due around 0930 GMT.
"Today's auctions of (Hungarian) bonds will give more
information about the depth of the market and how much demand
has remained after the recent rally," KBC said.
"Foreign investors have been relatively active in recent
days, so they may show demand on the auctions."
Markets will be watching the expected release of European
Union member 2009 final budget statistics according to the
bloc's standards later on Thursday.
"Now, with public finances especially in focus, that is one
of the strengths of emerging markets," said SEB strategist Mats
Olausson.
Currencies have fallen back into tight ranges this month
after jumping in value against the euro this year, which was led
by the zloty and its more than 6 percent gain.
The Polish central bank surprised markets on April 9 with
the first market intervention in 10 years to knock the zloty off
16-month peaks, and cooling markets since.
Analysts have said the move was likely just to slow the fast
appreciation of the zloty, not to protect a certain level.
The International Monetary Fund raised its growth outlook
for central and eastern Europe to 2.8 percent on Wednesday.
[]
But policymakers in Poland and Romania have become more
worried what stronger currencies could do to export demand.
Romania's leu <EURRON=> was down 0.1 percent at 4.135 per
euro on Thursday.
Hungary's forint is expected to rise further after Sunday's
election run-off, which could also prompt the incoming
pro-growth Fidesz government and the central bank to try to stem
currency gains to help the economy. []
Fidesz was close to winning the two-thirds parliamentary
majority needed to push through vital reforms, something markets
have already cheered.
"Maybe if Fidesz fails to win two-thirds, that might upset
investors a little," a dealer said. "But they have all said that
they would wait for the economic agenda of the next government
to crystallise before they make any major moves."
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 25.271 25.279 +0.03% +4.14%
Polish zloty <EURPLN=> 3.862 3.865 +0.08% +6.27%
Hungarian forint <EURHUF=> 263.45 263.87 +0.16% +2.62%
Croatian kuna <EURHRK=> 7.25 7.251 +0.01% +0.82%
Romanian leu <EURRON=> 4.135 4.133 -0.05% +2.48%
Serbian dinar <EURRSD=> 99.04 99.24 +0.2% -3.19%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
3-yr T-bond CZ3YT=RR -33 basis points to 59bps over bmk*
7-yr T-bond CZ7YT=RR +4 basis points to +64bps over bmk*
10-yr T-bond CZ10YT=RR +1 basis points to +59bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1053 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 Toby Chopra)
