By Anita Komuves BUDAPEST, September 10 (Reuters) – The Czech Koruna strengthened on Friday, outperforming regional peers as inflation accelerated to its highest level since 2008, raising market expectations for a rise rates above 25 basis points at the next central bank meeting. meeting at the end of September. Inflation in the Czech Republic reached 4.1% year-on-year in August, well above the central bank’s 1 percentage point tolerance range around its 2% target. The Czech central bank has raised its two-week repo rate to 0.75% in two standard steps by 25 basis points since June to fight inflation. A “more drastic increase of 50 basis points” was becoming more likely, UniCredit economist Patrik Rozumbersky said. The crown gained 0.36% to trade at 25.350 per euro. The level near 25.30-25.35 offers some resistance to further crown gains at the moment, said an FX trader in Prague. The Polish zloty edged down 0.04% to 4.5475 per euro, adding to its steep losses from the previous session when central bank governor Adam Glapinski remained accommodating at a conference Press. The Hungarian forint slipped 0.14% to 351.18 per euro. Hungary’s government bond yields were little changed a day after Hungary auctioned 5, 10 and 20 year bonds, selling more than supply, with yields rising by around 20 percentage points. basis compared to the previous auction. “There was a lot of interest in the auction, investors seem to think yields won’t go up and it’s worth buying now,” said a fixed income trader in Budapest. Secondary market yields at the long end of the curve have climbed around 20 basis points since the central bank announced on August 24 that it would begin to gradually reduce its bond purchases. Yields were also pushed higher by higher-than-expected inflation and rate hike expectations and higher base market yields, traders said. The 10-year bond yield was 3.07% on Friday. The leu fell slightly as data showed that consumer price inflation in Romania rose slightly more than expected to 5.25% year-on-year in August. Shares of Hungarian IT company 4iG jumped 6.61% at 09:40 GMT after the company announced Thursday evening that it plans to issue corporate bonds worth 400 billion forints (1, $ 35 billion). SNAPSHOT OF EEC MARKETS T 1135 CET CURRENC IES Last daily change previous bid closing change in 2021 EURCZK = Czech EURHUF = Hungary 0 EURPLN = Polish EURRON = Romania EURHRK = Croatia EURRSD = Serbian 0 Note: calculated from from 1800 daily change CET Last daily change previous near change in 2021 .PX Prague 1288.43 1286.160 + 0.18% +25.44 0% .BUX Budapes 53020.6 53015.67 + 0.01% +25.92 t 9% .WIG20 Warsaw 2368.60 2356.39 + 0.52% +19.39%. BETI Buchare 12443.1 12430.31 + 0.10% +26.90 st 7% .SBITOP Ljublja <.sbitop na> % .CRBEX Zagreb 1964.05 1956.95 + 0.36% +12.92% .BELEX1 Belgrad <.belex1 e> .SOFIX Sofia 563.92 566.12 -0.39% + 26.01% Yield Yield Spread Daily variation (bid) vs Bund variation of the Czech spread Republished CZ2YT = R s CZ5YT = R s CZ10YT = s Poland PL2YT = R s PL5YT = R s PL10YT = s FORWARD 3×6 6×9 9×12 3M Czech interbank 1.85 2.36 2.52 1.07 Republic of Hungary 2.14 2.28 2.38 1.57 Poland 0.42 0.64 0 , 88 0.24 ******************************************* ** ***** ********** ($ 1 = 295.8000 forints) (Additional report by Jason Hovet in Prague and Alan Charlish in Warsaw, edited by William Maclean)