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CEE MARKETS-Currencies little changed, bond yields slip as more of dovish ECB seen

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PRAGUE, July 3 (Reuters) - Central European currencies traded little changed on Wednesday as markets digested the nomination for the new European Central Bank chief, prospects of an economic slowdown and further trade disputes which weighed on Asian markets overnight. European Union leaders agreed that International Monetary Fund chief Christine Lagarde should replace Mario Draghi at the helm of the ECB. Analysts expect Lagarde to continue with Draghi's dovish policy stance after his term expires at the end of October. Global bond yields were hitting new lows as investors bet on further monetary easing around the world amid faltering global growth. The Polish zloty was a touch firmer ahead of National Bank of Poland's rate decision, due in early afternoon. Market will likely focus on the bank's fresh inflation outlook as it is expected to keep interest rates unchanged. "Despite the acceleration of inflation, (possibly) higher GDP and CPI forecasts in the July NBP projection and the easing of the rhetoric of the world's largest central banks, the meeting of the Monetary Policy Council ending today should not stir up much emotion," Bank Millenium said in a note. Hungary's forint and Czech crown traded a shade weaker on the day. Asian shares fell on Wednesday as initial enthusiasm over the latest U.S.-China trade truce was overtaken by fresh concerns over Washington's threat of tariffs on additional European goods. Global growth concerns also weighed on investor confidence, with South Korea the latest trade-reliant economy to cut its economic growth and export targets, a day after weaker factory readings worldwide.

CEE SNAPSHOT ATMARKETS 1039

CET CURRENCIE S

Latest Previou Daily Change

s

bid close change in 2019EURCZK= Czech 25.4500 25.4535 +0.01% +1.01%

crown

EURHUF= Hungary 323.0200 323.095 +0.02% -0.60%forint 0EURPLN= Polish 4.2436 4.2433 -0.01% +1.08%

zloty

EURRON= Romanian 4.7360 4.7330 -0.06% -1.73%

leu

EURHRK= Croatian 7.3955 7.3945 -0.01% +0.20%

kuna

EURRSD= Serbian 117.7000 117.760 +0.05% +0.51%dinar 0Note: calculated from 1800daily CET

change

Latest Previou Daily Change

s

close change in 2019.PX Prague 1043.42 1040.72 +0.26% +5.76%

00

.BUX Budapest 40928.38 40767.1 +0.40% +4.57%

2

.WIG20 Warsaw 2337.77 2341.09 -0.14% +2.69%.BETI Bucharest 8852.21 8773.99 +0.89% +19.89%.SBITOP Ljubljana 879.14 877.77 +0.16% +9.31%.CRBEX Zagreb 1876.03 1886.96 -0.58% +7.27%.BELEX15 Belgrade 739.31 740.81 -0.20% -2.94%.SOFIX Sofia 582.51 581.74 +0.13% -2.01%

BONDS

Yield Yield Spread Daily(bid) change vs Bund change inCzech spread

Republic

CZ2YT=RR 2-year 1.6020 0.1480 +237bp +17bps

s

CZ5YT=RR 5-year 1.3600 0.0900 +207bp +11bps

s

CZ10YT=RR 10-year <CZ10YT=RR 1.5070 -0.0070 +190bp +2bps> s

Poland

PL2YT=RR 2-year 1.5850 -0.0100 +235bp +1bps

s

PL5YT=RR 5-year 1.8930 -0.0410 +260bp -2bps

s

PL10YT=RR 10-year <PL10YT=RR 2.3240 -0.0340 +272bp +0bps> sFORWARD RATE AGREEME

NT

3x6 6x9 9x12 3M

interbank

Czech Rep <P 2.17 2.09 1.98 2.17

RIBOR=>

Hungary <B 0.29 0.38 0.47 0.25

UBOR=>

Poland <W 1.74 1.73 1.72 1.72

IBOR=> Note: FRA are for ask prices quotes

(Reporting by Robert Muller and Alicja Ptak, Editing by William Maclean)