CEE MARKETS-FX Companies As Investors Consider Further Rate Hikes
October 14 (Reuters) – Central European currencies were firmer on Thursday as investors focused on the prospect of further rate hikes in the region.
The region’s central banks have raised borrowing costs to cope with one of the highest inflation rates in the European Union, Poland – where most rate regulators had previously remained accommodating – offering an unexpected rise of 40 basis points last week.
“The zloty appreciates alongside expectations of higher interest rates this year (quotes on the FRA curve assume a 50bp rate hike this year),” PKO BP analysts said in a note.
“In addition, the valuation of PLN is also supported by global market sentiment, which has improved slightly in recent days.”
At 0854 GMT, the Polish zloty EURPLN = was 0.24% stronger against the euro at 4.571, while the Hungarian forint EURHUF = was 0.19% firmer at 359.60 and the Czech crown EURCZK = was 0.06% stronger at 25.371.
The Polish 10-year benchmark yield PL10YT = RR hovered near 2.5-year highs at 2.71% after rising sharply on Wednesday. The Czech 10-year rate CZ10YT = RR rose 2 basis points to 2.375%.
“The liquidation of Polish bonds has accelerated … as the markets anticipate a rather aggressive rise by the National Bank of Poland,” said Wojciech Mazurkiewicz, economist at Santander Bank Polska.
Poland’s central bank on Wednesday bought government and government-guaranteed bonds worth a total of PLN 578 million. She had offered to buy bonds worth 1 billion zlotys, much less than in previous auctions.
“The October auction confirms that the purchase of assets by the NBP is in practice on the way to a halt,” PKO BP said.
Scholarships in Budapest .BUX and Warsaw .WIG20 were 0.46% and 0.59% higher respectively, while the main Prague index .PX has changed little.
In Poland, participation in clothing retailer CCC CCCP.WA rose 2.8% after its second quarter net result turned into a profit of 100.0 million zlotys.
CEEC MARKETS
INSTANTANEOUS
At 1054 CET
COINS
Latest
Previous
Daily
Switch
offer
close
cash
in 2021
EURCZK =
czech crown
EURCZK =
25.3710
25.3850
+ 0.06%
+ 3.38%
EURHUF =
Hungarian forint
EURHUF =
359.6000
360,2900
+ 0.19%
+ 0.87%
EURPLN =
Polish Zloty
EURPLN =
4.5710
4.5820
+ 0.24%
-0.26%
EURRON =
leu in Romanian
EURRON =
4.9495
4.9500
+ 0.01%
-1.71%
EURHRK =
Croatian Kuna
EURHRK =
7.5100
7.5183
+ 0.11%
+ 0.50%
EURRSD =
Serbian dinar
EURRSD =
117.5000
117.5500
+ 0.04%
+ 0.06%
Note: daily change
calculated from
1800 CET
Latest
Previous
Daily
Switch
close
cash
in 2021
.PX
Prague
.PX
1366.17
1365.6400
+ 0.04%
+33.01%
.BUX
Budapest
.BUX
54986.99
54733.73
+ 0.46%
+ 30.59%
.WIG20
Warsaw
.WIG20
2466.36
2451.89
+ 0.59%
+ 24.31%
.BETI
Bucharest
.BETI
12785.61
12745.39
+ 0.32%
+ 30.39%
.SBITOP
Ljubljana
.SBITOP
1169.94
1164.98
+ 0.43%
+ 29.87%
.CRBEX
Zagreb
.CRBEX
2049.87
2045.58
+ 0.21%
+ 17.86%
.BELEX15
Belgrade
.BELEX15
790.20
789.67
+ 0.07%
+ 5.56%
.SOFIX
Sofia
.SOFIX
568.69
572.57
-0.68%
+ 27.07%
Yield
Yield
Broadcast
Daily
(offer)
cash
against the Bund
switch
Czech Republic
broadcast
CZ2YT = RR
2 years
CZ2YT = RR
2.3480
0.0340
+ 302bps
+ 4bps
CZ5YT = RR
5 years
CZ5YT = RR
2.3640
0.0300
+ 287bp
+ 5bps
CZ10YT = RR
10 years
CZ10YT = RR
2.3750
0.0210
+253 bp
+ 4bps
Poland
PL2YT = RR
2 years
PL2YT = RR
1.6340
-0.0940
+ 231bps
-9bps
PL5YT = RR
5 years
PL5YT = RR
2.2040
-0.0780
+ 271bp
-6bps
PL10YT = RR
10 years
PL10YT = RR
2.7110
-0.0010
+ 286bps
+ 2bps
CHEEKY
3×6
6×9
9×12
3M Interbank
Czech Republic
CZKFRAPRIBOR =
3.09
3.34
3.16
1.98
Hungary
HUFFRABUBOR =
2.42
2.81
3.01
1.85
Poland
PLNFRAWIBOR =
1.43
1.82
2.18
0.68
Note: quotes from FRA
are for the asking prices
************************************************** ************
(Reporting by Alan Charlish in Warsaw, Anita Komuves in Budapest and Jason Hovet in Prague; edited by Uttaresh.V)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.