CEE MARKETS-Czech crown companies ahead of c.bank meeting, forint up slightly

Band Anita Komuves
BUDAPEST, September 29 (Reuters) – Central European currencies strengthened on Wednesday, with the Hungarian forint recording a five-day losing streak and the Czech crown among the top gainers a day before an expected central bank rate hike.
Czech crown EURCZK = strengthened 0.15% to 25.4620 per euro after local markets reopened after a public holiday on Tuesday, focusing mainly on the Czech central bank meeting on Thursday.
Analysts expect the bank to step up rate hikes with an increase of 50 basis points larger than usual, the first since 1997.
The Hungarian and Czech central banks began to hike rates in June to fight inflation as their economies recovered from the economic crisis caused by the pandemic.
The Hungarian forint EURHUF = edged up 0.06% and traded at 359.33 per euro, but still traded at a two-month low and near the key level of 360.
The currency fell around 2% over the past week, under pressure from a rate hike 15 basis points lower than the central bank’s expectations last week.
Rising US Treasury yields and Hungary’s feud with the European Union over several issues also weakened the forint, traders said.
âThe Hungarian forint is the highest beta currency of this peer group and tends to deteriorate on risk-free moves,â Commerzbank wrote in a note.
Hungarian government bond yields on the long end of the curve retreated on Wednesday after surging in the previous session.
âThe rise in US Treasury yields hit the Hungarian bond market yesterday, and yields have risen by around 10 basis points, but they have retreated somewhat today,â a fixed income trader told Budapest.
The 10-year bond yield was 3.2% on Wednesday.
Besides the rise in core market yields, the gradual reduction in the central bank’s quantitative easing program has also affected yields, another FI trader said.
The bank announced last week that bond purchases would drop from a weekly amount of 50 billion forints to 40 billion.
The central bank bought 30 billion forints ($ 98.62 million) in government bonds from commercial banks at its weekly auction on Tuesday.
CEEC MARKETS
INSTANTANEOUS
At 1041 CET
COINS
Latest
Previous
Daily
Switch
offer
close
cash
in 2021
EURCZK =
czech crown
EURCZK =
25.4620
25.5000
+ 0.15%
+ 3.01%
EURHUF =
Hungarian forint
EURHUF =
359.3300
359.5500
+ 0.06%
+ 0.94%
EURPLN =
Polish Zloty
EURPLN =
4.6269
4.6340
+ 0.15%
-1.46%
EURRON =
leu in Romanian
EURRON =
4.9492
4.9510
+ 0.04%
-1.70%
EURHRK =
Croatian Kuna
EURHRK =
7.4980
7.5015
+ 0.05%
+ 0.66%
EURRSD =
Serbian dinar
EURRSD =
117.4800
117.5800
+ 0.09%
+ 0.08%
Note: daily change
calculated from
1800 CET
Latest
Previous
Daily
Switch
close
cash
in 2021
.PX
Prague
.PX
1321.90
1322.4000
-0.04%
+ 28.70%
.BUX
Budapest
.BUX
51540.76
51446.20
+ 0.18%
+ 22.40%
.WIG20
Warsaw
.WIG20
2289.71
2275.68
+ 0.62%
+ 15.41%
.BETI
Bucharest
.BETI
12547.96
12522.92
+ 0.20%
+ 27.97%
.SBITOP
Ljubljana
.SBITOP
1168.93
1165.97
+ 0.25%
+ 29.76%
.CRBEX
Zagreb
.CRBEX
1989.63
1987.72
+ 0.10%
+ 14.39%
.BELEX15
Belgrade
.BELEX15
801.86
801.35
+ 0.06%
+ 7.11%
.SOFIX
Sofia
.SOFIX
573.36
570.10
+ 0.57%
+ 28.12%
Yield
Yield
Broadcast
Daily
(offer)
cash
against the Bund
switch
Czech Republic
broadcast
CZ2YT = RR
2 years
CZ2YT = RR
1,8950
0.0020
+258 bp
+ 0bps
CZ5YT = RR
5 years
CZ5YT = RR
1.9620
-0.0220
+251 bp
-2bps
CZ10YT = RR
10 years
CZ10YT = RR
2.0370
-0.0330
+ 224bps
-3bps
Poland
PL2YT = RR
2 years
PL2YT = RR
0.6020
-0.1240
+ 129bps
-12bps
PL5YT = RR
5 years
PL5YT = RR
1.5000
-0.0310
+205 bp
-3bps
PL10YT = RR
10 years
PL10YT = RR
2.1280
-0.0350
+ 233bps
-3bps
CHEEKY
3×6
6×9
9×12
3M Interbank
Czech Republic
CZKFRAPRIBOR =
2.22
2.57
2.82
1.17
Hungary
HUFFRABUBOR =
2.28
2.44
2.57
1.78
Poland
PLNFRAWIBOR =
0.52
0.80
1.06
0.24
Note: quotes from FRA
are for the asking prices
************************************************** ************
(Additional report by Jason Hovet in Prague; Editing by Ramakrishnan M.)
((komuves.anita@thomsonreuters.com) (+ 36 70 795 8815))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.