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CEE MARKETS-Bond yields rise ahead of Hungarian auction on dollar strength

* Bond yields up, tracking U.S. and euro zone peers

* Hungary expected to sell bonds at higher yields at auction

* Forint, zloty trade near multi-month lows vs euro

* Czech crown stays near 26/euro in international trade

BUDAPEST, Sept 28 (Reuters) - Central European government bonds and currencies eased on Thursday as U.S. tax-reform plans announced on Wednesday underpinned the dollar and cut appetite for assets in emerging markets. The dollar's strength, also helped by hawkish comments from Federal Reserve Chair Janet Yellen, have weighed on Central Europe's most liquid currencies, the zloty and the forint, this week. They have also been weakened by measures to ease monetary policy that Hungary took last week and by concern over new Polish proposals for its judiciary reform, which has soured Warsaw's relations with some major European capitals. Both currencies traded near multi-month lows, with the forint shedding 0.2 percent to 311.71 against the euro The zloty, after a heavy beating on Wednesday, was steady at 4.3175, staying weaker than the 4.3 psychological line. Government bond yields in the region tracked their U.S. and euro zone peers higher. Hungary's 10-year yield rose 9 basis points from Wednesday's fixing to 2.58 percent. Poland's comparable yield rose 2 basis points to 3.371 percent. That reversed a rally in Hungary where the central bank's pledge for measures to boost demand for government debt had pushed down yields to record lows. At the increased yields, the government is likely to sell 3-, 5- and 10-year bonds easily at an auction on Thursday, traders said. Demand for the shortest maturity could suffer, though, because the debt agency AKK told traders on Wednesday that it had suspended holding buyback auctions for an indefinite time, traders said. "The bonds will be sold at the increased yields," one trader said. "The U.S. tax package, however, creates uncertainty as investors are considering now if the plans overwrite expectations about monetary policies," one trader said. Czech markets were closed for a national holiday on Thursday. The crown was steady at 26.036 against the euro at 0851 GMT. On Wednesday, the Czech central bank voted by a slim margin against raising interest rates further, disappointing some investors. Many still expect the bank to increase interest rates at its next meeting in November.

CEE MARKETS SNAPSH AT 1033 CET

OT CURRENCIES

Latest Previo Daily Change

us

bid close change in

2017

Czech crown 26.036 26.028 -0.03% 3.73% 0 5 Hungary 311.71 311.16 -0.18% -0.93% forint 00 00 Polish zloty 4.3175 4.3194 +0.04 2.00%

%

Romanian leu 4.5990 4.5963 -0.06% -1.39% Croatian 7.5020 7.5015 -0.01% 0.71%

kuna

Serbian 119.31 119.46 +0.13 3.39% dinar 00 00 % Note: daily calculated previo close 1800 change from us at CET

STOCKS

Latest Previo Daily Change

us

close change in

2017

Prague 1043.6 1042.5 +0.11 +13.2 8 0 % 5% Budapest 37449. 37244. +0.55 +17.0 07 30 % 2% Warsaw 2435.5 2433.8 +0.07 +25.0 0 2 % 3% Bucharest 7908.1 7914.2 -0.08% +11.6 6 4 2% Ljubljana 800.51 798.30 +0.28 +11.5 % 6% Zagreb 1799.5 1804.0 -0.25% -9.79% 8 3 Belgrade 723.41 721.17 +0.31 +0.84 % % Sofia 686.40 684.12 +0.33 +17.0 % 5%

BONDS

Yield Yield Spread Daily (bid) change vs change Bund in Czech spread

Republic

2-year 0.196 0.424 +088b +41bp ps s 5-year 0.246 -0.002 +049b -3bps

ps

10-year 1.148 -0.081 +066b -11bps

ps Poland

2-year 1.745 0.018 +243b +1bps

ps

5-year 2.714 0.042 +296b +1bps

ps

10-year 3.394 0.023 +290b +0bps

ps

FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interb ank

Czech Rep <PR 0.73 0.88 1 0

IBOR=>

Hungary <BU 0.08 0.12 0.16 0.04

BOR=>

Poland <WI 1.764 1.825 1.881 1.73

BOR=>

Note: FRA are for ask quotes prices ********************************************************* *****

(Reporting by Sandor Peto, editing by Larry King)