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CEE MARKETS-Leu jumps from 6-week lows, tax debate stays in focus

next week to prevent a downgrade of its credit rating outlook

* Leu firms, central bank may have intervened -dealers

* Investors watch how Romanian government will alter new taxes

* Currencies mixed, British Brexit vote watched closely

* Polish central bank sometimes intervenes, its chief says

BUDAPEST/BUCHAREST, March 14 (Reuters) - The leu jumped on Thursday, rebounding from 6-week lows set late in the previous session, in what market participants said was possible intervention by Romania's central bank. Romanian asset prices has been jittery in the past three months since the government announced new taxes on various business sectors including banks. The government is expected to work out changes to the levies to negative from stable by Standard & Poor's. The leu firmed a quarter of a percent against the euro through the 4.77 psychological line, to trade at 4.768 at 0930 GMT, off Wednesday's 6-week lows at 4.78. The Romanian central bank has a track record of managing the currency in the market sometimes. One Bucharest-based dealer said the central bank was probably behind the leu's rebound. "The historically high turnover (on Wednesday) is supporting the idea of official offers coming in to protect the Romanian leu," Bucharest-based ING Bank analysts said in a note. Romania's overnight ROBOR interbank interest rate was bid at 1.41 percent, unchanged from Wednesday and still near 3-month lows. Given the uncertainty over S&P's rating, an auction of 5-year Romanian bonds on Thursday "seems to have come at the wrong time", but the government could sell the full amount if it allows some rise in the yield, the ING note added. The yield on the 5-year benchmark Romanian bond was bid higher by 8 basis points in the secondary market to 4.33 percent. Hungarian yields rose 2-3 basis points ahead of the government's auction on Thursday as the market digests a rise in the sale at the bi-weekly auctions to above 100 billion forints ($359.69 million), one trader said. Regional currencies were mixed as investors were looking at the impact of the third British parliamentary vote this week concerning its planned exit from the European Union, this time on whether to delay the March 29 deadline. The forint firmed slightly, trading near Wednesday's 10-month highs amid expectations that the Hungarian central bank will start to tighten policy at its meeting on March 26. Poland's zloty eased a touch, but remained stuck at the 4.3 psychological line versus the euro. Polish central bank governor Adam Glapinski said the bank has sometimes intervened in the foreign exchange market but these interventions have been limited. DM TMS Brokers analyst Konrad Bialas said the stability of Poland's economy and monetary policy had kept the zloty very stable in the past months, rather than interventions.



Latest Previous Daily Changebid close change in 2019Czech <EURCZK= 25.6670 25.6520 -0.06% +0.16%crown >Hungary <EURHUF= 314.5000 314.8500 +0.11% +2.09%forint >Polish <EURPLN= 4.3020 4.3005 -0.03% -0.29%zloty >Romanian <EURRON= 4.7680 4.7799 +0.25% -2.39%leu >Croatian <EURHRK= 7.4195 7.4163 -0.04% -0.13%kuna >Serbian <EURRSD= 118.0500 118.1900 +0.12% +0.21%dinar >Note: calculated from 1800 CET

daily change

Latest Previous Daily Changeclose change in 2019Prague 1069.57 1061.630 +0.75% +8.41%


Budapest 41120.43 40887.58 +0.57% +5.06%Warsaw 2322.01 2314.79 +0.31% +1.99%Bucharest 7885.83 7857.52 +0.36% +6.80%Ljubljana <.SBITOP 872.67 874.53 -0.21% +8.51%>Zagreb 1769.51 1767.34 +0.12% +1.18%Belgrade <.BELEX1 700.17 705.47 -0.75% -8.08%


Sofia 578.91 578.77 +0.02% -2.62%


Yield Yield Spread Daily(bid) change vs Bund change


Czech spread


2-year <CZ2YT=R 1.8740 0.0730 +241bps +6bps


5-year <CZ5YT=R 1.7910 0.0050 +217bps -1bps


10-year <CZ10YT= 1.9050 0.0120 +183bps +0bps

RR> Poland

2-year <PL2YT=R 1.6360 -0.0850 +217bps -10bps


5-year <PL5YT=R 2.2360 0.0120 +261bps +0bps


10-year <PL10YT= 2.8900 0.0250 +281bps +1bps




3x6 6x9 9x12 3M

interban k

Czech Rep 2.21 2.26 2.28 2.03



Hungary 0.41 0.61 0.81 0.14Poland 1.74 1.74 1.74 1.72

Note: FRA are for ask prices quotes


************* ($1 = 278.0200 forints)

(Editing by Mark Heinrich)