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CEE MARKETS-Currencies steady, eyes on Fed meeting

BUCHAREST, July 30 (Reuters) - Central European currencies held near previous lows on Tuesday ahead of an expected interest rate cut by the U.S. Federal Reserve this week, while shares in the region fell. The U.S. central bank will begin a two-day policy meeting later in the day, at which it is widely expected to lower interest rates for the first time in a decade. Earlier this month, the European Central Bank flagged further policy easing. Central banks in Central and Eastern Europe have adopted a wait-and-see rate policy stance despite high inflation and economic growth, as loose global monetary policy had eased pressure on them to act, but worries about an economic slowdown in the euro zone were beginning to weigh. At 0915 GMT, the Polish zloty was flat against the euro at 4.2913, trading near a two-month low. The Czech crown, Hungarian forint and Romanian leu were also steady against the euro. Stock markets were weaker, led by Prague's blue-chip index and Warsaw's, down 0.7% and 0.5% respectively. "Not in their best moods, investors in Europe await tomorrow's result of the U.S. Federal Reserve meeting," Bank Millennium analysts said in a note, noting that growing concerns over a no-deal Brexit were also keeping markets on edge. "In response, currencies in the region lose, including the zloty, and the capital flows towards safe German bonds." Poland's biggest gas firm PGNiG said on Monday evening it estimated its second quarter net profit at 250 million zlotys, down from 700 million zlotys a year ago, but its shares gained as much as 2.5% as adjusted core earnings (EBITDA) beat analysts' expectations. Elsewhere, Romanian debt managers were expected to release domestic issuance plans for August. "A quiet day for government bonds as the market awaits the Federal Reserves rate decision tomorrow while the August auction calendar hasnt been released yet," ING said in a note. "If anything, some profit taking is more likely before the Fed."

CEE SNAPSHO ATMARKETS T 1127

CET CURRENC IES

Latest Previou Daily Change

s

bid close change in 2019Czech <EURCZK= 25.6570 25.6500 -0.03% +0.19%crown >Hungary <EURHUF= 327.800 327.820 +0.01% -2.05%forint > 0 0Polish <EURPLN= 4.2899 4.2895 -0.01% -0.01%zloty >Romanian <EURRON= 4.7300 4.7320 +0.04% -1.61%leu >Croatian <EURHRK= 7.3805 7.3780 -0.03% +0.40%kuna >Serbian <EURRSD= 117.620 117.690 +0.06% +0.58%dinar > 0 0Note: calculated from 1800daily CET

change

Latest Previou Daily Change

s

close change in 2019Prague 1063.95 1070.64 -0.62% +7.84%

00

Budapest 40923.3 41006.4 -0.20% +4.56%3 4Warsaw 2274.33 2285.93 -0.51% -0.10%Bucharest 8995.29 8998.36 -0.03% +21.83

%

Ljubljana <.SBITOP 874.52 874.30 +0.03% +8.74%>Zagreb 1927.17 1921.71 +0.28% +10.20

%

Belgrade <.BELEX1 749.56 741.54 +1.08% -1.59%

5>

Sofia 582.54 583.50 -0.16% -2.01%

BONDS

Yield Yield Spread Daily(bid) change vs Bund change

in

Czech spread

Republic

2-year <CZ2YT=R 1.3260 0.1060 +209bp +10bpsR> s5-year <CZ5YT=R 1.1630 0.0180 +188bp +2bpsR> s10-year CZ10YT= 1.3340 0.0090 +173bp +1bpsRR> s

Poland

2-year <PL2YT=R 1.5480 0.0090 +231bp +1bpsR> s5-year <PL5YT=R 1.9080 0.0490 +262bp +5bpsR> s10-year <PL10YT= 2.1880 0.0410 +258bp +5bpsRR> sFORWARD RATE AGREEME

NT

3x6 6x9 9x12 3M

interba nk

Czech Rep 2.13 2.03 1.92 2.16

<PRIBOR=

>

Hungary 0.34 0.42 0.48 0.26Poland 1.74 1.73 1.72 1.72

Note: FRA are for ask

quotes prices****************************************

(Reporting by Luiza Ilie in Bucharest and Agnieszka Barteczko in Warsaw; Editing by Mark Potter)