Off The Wire
CEE MARKETS-Forint hits five-month high before slight retreat, crown also pulls back
In Hungary, the forint was up 0.2% at 395.15 to the euro in mid-morning trade after reaching as high as 393.30. The currency is 1.1% stronger so far in 2023 and has gained steadily since December, first getting a boost from Budapest's moves to unlock European Union funds frozen in a dispute over rule of law issues, and more recently lifted by easing gas prices and a weaker U.S. dollar. "Our EMFX factor framework has reduced the allocation to HUF while positioning is getting stretched. We still prefer to express our constructive HUF stance through relative value trades and remain short PLN/HUF," Morgan Stanley wrote in a note. Poland's zloty edged 0.3% lower, but stuck in ranges seen to start 2023. Analysts see range trading continuing. The crown also pulled off session highs approaching 23.920 to the euro, retreating alongside the forint, traders said. It traded at 23.98 to the euro, or 0.15% lower on the day, at 1003 GMT. Analysts have seen few impulses for further gains for the crown, which led central Europe in 2022 with a 3% rise. The Czech central bank has held steady on interest rates for the past half-year, and while policymakers have not ruled out a further hike, vice-Governor Eva Zamrazilova reiterated on Wednesday that a preemptive rate raise was not right. The Czech Finance Ministry was planning its first euro-denominated T-bill auction on Wednesday, with results due midday. It has already been offering government bonds in euros, issued under Czech law, to satisfy its foreign currency borrowing needs, and will begin doing the same for short-term debt. "Looking at comparable short-term EUR debt, we expect yields around 2.10–2.40 but with less confidence as Czech EUR T-BILLs are a novelty," Komercni Banka trade Marek Lesko said. CEE SNAPSHO AT
MARKETS T 1103
CET
CURRENC
IES
Latest Previou Daily Change s
bid close change in 2023
EURCZK Czech <EURCZK 23.9800 23.9450 -0.15% +0.74%
= crown =>
EURHUF Hungary <EURHUF 395.150 396.000 +0.22% +1.09%
= forint => 0 0
EURPLN Polish <EURPLN 4.7090 4.6960 -0.28% -0.41%
= zloty =>
EURRON Romanian <EURRON 4.9345 4.9335 -0.02% +0.16%
= leu =>
EURHRK Croatian <EURHRK 7.5330 7.5365 +0.05% +0.05%
= kuna =>
EURRSD Serbian <EURRSD 117.320 117.355 +0.03% -0.02%
= dinar => 0 0
Note: calculated from 1800
daily CET
change
Latest Previou Daily Change s
close change in 2023
.PX Prague 1278.81 1271.37 +0.59% +6.41%
00
.BUX Budapest 46680.2 46313.7 +0.79% +6.59%
0 0
.WIG20 Warsaw <.WIG20 1906.32 1904.51 +0.10% +6.38%
>
.BETI Buchares 12078.8 11959.9 +0.99% +3.56%
t 5 1
.SBITO Ljubljan <.SBITO 1103.93 1106.44 -0.23% +5.26%
P a P>
.CRBEX Zagreb <.CRBEX 2068.14 2054.39 +0.67% +687.0
> 5%
.BELEX Belgrade <.BELEX 832.01 843.22 -1.33% +0.90%
15 15>
.SOFIX Sofia <.SOFIX 616.31 616.48 -0.03% +2.46%
>
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
CZ2YT= 2-year <CZ2YT= 5.6800 0.0160 +318bp -3bps
RR RR> s
CZ5YT= 5-year <CZ5YT= 4.7260 -0.0280 +261bp -6bps
RR RR> s
CZ10YT <CZ10YT 4.3280 0.0310 +223bp +3bps
=RR 10-year =RR> s
Poland
PL2YT= 2-year <PL2YT= 5.9050 -0.1350 +340bp -18bps
RR RR> s
PL5YT= 5-year <PL5YT= 5.9340 -0.0470 +382bp -8bps
RR RR> s
PL10YT <PL10YT 5.9980 -0.0380 +390bp -4bps
=RR 10-year =RR> s
FORWARD
3x6 6x9 9x12 3M interba nk Czech <CZKFRA 7.08 6.79 6.28 7.21 Rep ><PRIBO
R=>
Hungary <HUFFRA 14.09 12.08 11.03 16.03 ><BUBOR
=>
Poland <PLNFRA 6.96 6.80 6.29 6.93 ><WIBOR
=>
Note: are for ask
FRA prices
quotes
********************************************
******************
(Reporting by Jason Hovet in Prague, Anna Wlodarczak-Semczuk in
Warsaw, and Krisztina Than in Budapest; Editing by Krishna
Chandra Eluri)
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