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CEE MARKETS-Investors eye Romanian government, Hungarian central bank

WARSAW, Aug 27 (Reuters) - Central European currencies remained under pressure on Tuesday as worries about global growth weighed on emerging-market assets, with the Romanian leu slipping around 0.2% after the country's ruling coalition collapsed. Elsewhere, the Hungarian forint was near recent lows before the National Bank of Hungary announced its rate decision at 1200 GMT. The bank was expected to leave its base rate unchanged at 0.9%. Romania's ruling Social Democrats lost their small parliamentary majority on Monday after a junior ally quit government over policy, leaving them vulnerable to a confidence vote. "There's bit of uncertainty related to the government's fate and the market now responds to that," said a dealer with a foreign bank in Bucharest. The leu, bouncing around its lowest level this month, was the worst-performing currency in the region, down 0.21% against the euro at 0755 GMT to be bid at 4.7355. The Polish zloty was bid at 4.3676 against the euro, down 0.13% from Monday's close. The Czech crown was little changed at 25.784. The forint remained on soft ground. "The forint moves on a weakening path, with the currency opening at 329.1 (per euro) this morning," Erste Investment analysts said in a note. "This is a smaller technical level, however, the 330 mark could be much more important from a psychological aspect. If that were to fall, one could start worrying that the currency could suddenly head north (weaker)." Polish bond yields fell for a second day in a row, after reports the government plans to move its budget out of deficit in 2020 for the first time in 30 years on Tuesday. At 0859 GMT, the Polish 10-year yield was down 4 basis points at 1.898%. "In Poland, there was also a noticeable narrowing of asset swap spreads, which in turn could be associated with the work being started on next year's budget," PKO Bank Polski analysts said in a note, "The lack of a deficit means much lower than expected Treasury securities issues on the primary market." Czech 10-year yields were little changed at 1.088% Stocks traded lower, with Warsaw's WIG 20 down 0.31% and Prague's PX index down 0.38% at 0936 GMT. Stock markets have been hit by concerns about global trade and a slowdown in major economies.



Latest Previous Daily Changebid close change in 2019Czech 25.7850 25.7870 +0.01% -0.30%


Hungary 328.9000 329.0500 +0.05% -2.38%


Polish 4.3610 4.3590 -0.05% -1.64%


Romanian 4.7340 4.7288 -0.11% -1.69%


Croatian 7.3950 7.3945 -0.01% +0.20%


Serbian 117.7700 117.8050 +0.03% +0.45%


Note: calculated from 1800 CET

daily change

Latest Previous Daily Changeclose change in 2019Prague 1035.30 1039.350 -0.39% +4.94%


Budapest 39481.66 39661.47 -0.45% +0.88%Warsaw 2091.67 2098.41 -0.32% -8.12%Bucharest 9088.54 9044.48 +0.49% +23.09%Ljubljana 857.67 857.88 -0.02% +6.64%Zagreb 1880.31 1873.74 +0.35% +7.52%Belgrade <.BELEX15 748.63 747.28 +0.18% -1.71%>Sofia 574.04 574.66 -0.11% -3.44%


Yield Yield Spread Daily(bid) change vs Bund change


Czech spread


2-year <CZ2YT=RR 1.0730 -0.0030 +196bps -1bps>5-year <CZ5YT=RR 0.8740 0.0300 +178bps +3bps>10-year <CZ10YT=R 1.0310 -0.0560 +171bps -5bps

R> Poland

2-year <PL2YT=RR 1.5430 -0.0180 +243bps -3bps>5-year <PL5YT=RR 1.6590 -0.0440 +257bps -4bps>10-year <PL10YT=R 1.8940 -0.0440 +257bps -4bps




3x6 6x9 9x12 3M

interban k

Czech Rep < 2.09 1.89 1.72 2.14


Hungary < 0.30 0.39 0.34 0.26


Poland < 1.70 1.66 1.62 1.72

WIBOR=> Note: FRA are for ask prices quotes



(Reporting by Alan Charlish in Warsaw, Radu-Sorin Marinas in Bucharest, Jason Hovet in Prague, Gergely Szakacs in Budapest; editing by Larry King)