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CEE MARKETS-Bond yields rise before U.S. jobs data released

* Polish 10-year bond yield trades at five-month high

* Upcoming U.S. jobs report weighs on CEE bond prices, currencies

* Romanian liquidity squeeze may remain, central bank watched

* Czech bonds buck easing, analyst poll sees further crown gains

BUDAPEST/BUCHAREST, Oct 6 (Reuters) - Central European debt yields rose on Friday before a U.S. jobs report that might increase the chances the Federal Reserve will raise interest rates later this year. Regional currencies mostly eased because a good jobs report would strengthen the U.S. dollar. Romania's government on Thursday rejected all bids at a bond tender for the first time since March, unwilling to tolerate a yield rise amid low demand. Romanian bonds mostly tracked a global rise in yields on Friday, with the yield on 2018 and 2019 expiries rising 5 to 7 basis points to 1.64 and 1.89 percent, respectively, one trader said. Poland's 10-year yield reached a five-month high, rising 6 basis points to 3.439 percent. Hungary's yield rose 5 basis points to 2.71 percent. Romania's three-month interbank rate was set at 1.78 percent, remaining near three-year highs, even though the central bank injected 9.4 billion lei into the market through a repo tender on Tuesday. The usual wage and other payments around Oct. 10 may not ease the liquidity shortage because dividend payments by state-owned companies and improved tax collection have pumped lei out of markets. A seasonal jump in government spending late in the year may increase liquidity, but may also weigh on the leu, which traded a touch off seven-week highs against the euro. Concern over a rise in the deficit may prompt Standard & Poor's to revise the outlook for its rating for Romania to negative in a review late on Friday, Raiffeisen said in a note. Elsewhere, Czech bonds were mostly steady. Foreigners holding long positions in the Czech crown have not rushed to take profit, even though the currency has gained 4.5 percent so far this year, fueled by expectations for rate hikes by the central bank. The crown traded slightly weaker at 25.84 against the euro but still near its strongest levels since the CNB removed a cap on its value in April, which had kept it weaker than 27 to the euro for years. A Reuters poll of analysts on Friday forecast that the crown would gain a further 1.3 percent in the next 12 months.

CEE MARKETS SNAPSH AT 1127 CET

OT CURRENCIES

Latest Previo Daily Change

us

bid close change in

2017

Czech crown 25.840 25.833 -0.03% 4.52% 0 5 Hungary 311.78 311.94 +0.05 -0.95% forint 00 00 % Polish zloty 4.3048 4.3023 -0.06% 2.30% Romanian leu 4.5760 4.5742 -0.04% -0.90% Croatian 7.5040 7.5060 +0.03 0.68% kuna % Serbian 119.08 119.09 +0.01 3.59% 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 1059.5 1057.3 +0.21 +14.9 9 9 % 7% Budapest 37993. 37876. +0.31 +18.7 37 47 % 2% Warsaw 2484.1 2463.4 +0.84 +27.5 4 5 % 3% Bucharest 7953.1 7904.6 +0.61 +12.2 0 2 % 5% Ljubljana 800.44 801.09 -0.08% +11.5

5%

Zagreb 1810.9 1800.9 +0.55 -9.22% 6 8 % Belgrade 722.51 722.11 +0.06 +0.72 % % Sofia 677.06 672.93 +0.61 +15.4 % 5%

BONDS

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

Republic

2-year 0.335 0 +102b -1bps

ps

5-year 0.447 0.056 +069b +4bps

ps

10-year 1.336 -0.006 +086b -3bps

ps Poland

2-year 1.727 0.012 +241b +0bps

ps

5-year 2.74 0.028 +299b +1bps

ps

10-year 3.447 0.036 +297b +1bps

ps

FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interb ank

Czech Rep <PR 0.76 0.91 1.05 0

IBOR=>

Hungary <BU 0.085 0.115 0.17 0.03

BOR=>

Poland <WI 1.771 1.818 1.91 1.73

BOR=>

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

(Reporting by Sandor Peto, editing by Larry King)