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CEE MARKETS-Debt sales draw robust demand, Hungarian yields set record lows

* Demand heavy at auctions in Budapest, Prague, Warsaw

* Long-term Hungarian bonds trade at record low yields

* Central bank measures to curb yields weigh on forint

(Recasts with debt auctions.) BUDAPEST, Nov 23 (Reuters) - Hungarian long-term government bonds traded at record low yields on Thursday after their first auction since the central bank announced measures to push yields lower. Debt auctions in Prague and Warsaw also drew robust demand. Hungary sold 3-, 5- and 10-year bonds worth 99 billion forints at its own auctions, 80 percent more than planned . The longer bonds were sold at record low yields, and secondary market trading settled at the same levels after the primary sale: the 5-year benchmark at 1.04 percent and the 10-year paper at 2.04 percent. The sale came two days after Hungary's central bank, one of the most dovish in the world, announced that it would launch a big interest rate swap program from January to push long-term yield lower, and also a mortgage note buying scheme. The comments helped drive Hungarian bond yields down after a steep decline since March. Some market participants expect the NBH's loose policy to weaken the forint to one-year lows past 315 against the euro later this year. The strong bond sale helped the currency reverse an early weakening. At 1421 GMT, it traded at 312.62, a touch firmer from Wednesday. Polish bond yields, which are well above Hungarian levels also fell, after an auction in Warsaw. Following the auction, Polish 10-year debt traded at a yield of 3.33 percent, down 7 basis points. Analysts said demand got a boost from Wednesday's Federal Reserve minutes, which suggested that U.S. interest rates may rise more slowly than expected. Demand at an auction of Czech 19-week Treasury bills also jumped, driven by banks trying to keep cash off their books at the end of the year, to reduce a charge they have to pay to a national resolution fund. The crown extended the gains reached in the past weeks as expectations grew that the Czech central bank would further raise interest rates. The currency set a 4 1/2-year high against the euro, trading at 25.431, up 0.2 percent. The leu eased, hovering near record lows. The Romanian government rejected all bids at a one-year Treasury bill auctions. Surging yields have caused several auctions to fail since October, along with a decline by leu amid corruption scandals and a rise in inflation.

CEE MARKETS SNAPSH AT 1521 CET

OT CURRENCIES

Latest Previo Daily Change

us

bid close change in

2017

Czech crown 25.431 25.487 +0.22 6.20% 0 5 % Hungary 312.62 312.75 +0.04 -1.22% forint 00 00 % Polish zloty 4.2102 4.2051 -0.12% 4.60% Romanian leu 4.6530 4.6515 -0.03% -2.54% Croatian 7.5730 7.5775 +0.06 -0.24% kuna % Serbian 119.35 119.19 -0.13% 3.35% 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 1045.2 1046.6 -0.13% +13.4 6 1 2% Budapest 39965. 40131. -0.41% +24.8 27 37 8% Warsaw 2512.9 2489.5 +0.94 +29.0 2 0 % 1% Bucharest 7784.1 7772.9 +0.14 +9.87 9 6 % % Ljubljana 781.69 786.11 -0.56% +8.93

%

Zagreb 1860.3 1857.6 +0.14 -6.74% 0 5 % Belgrade 736.19 731.78 +0.60 +2.62 % % Sofia 667.71 669.38 -0.25% +13.8

6% BONDS

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

Republic

2-year 0.473 0.093 +116b +8bps

ps

5-year 1.024 0.141 +135b +14bp ps s 10-year 1.757 -0.025 +141b -2bps

ps Poland

2-year 1.551 -0.004 +224b -1bps

ps

5-year 2.565 -0.038 +289b -4bps

ps

10-year 3.34 -0.049 +299b -5bps

ps

FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interb ank

Czech Rep <PR 1.03 1.21 1.34 0

IBOR=>

Hungary <BU 0.03 0.06 0.1 0.03

BOR=>

Poland <WI 1.785 1.83 1.92 1.73

BOR=>

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

(Additional reporting by Jason Hovet in Prague and Bartosz Chmielewski in Warsaw, editing by Larry King)