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CEE MARKETS-FX in holding pattern, stocks mixed ahead of U.S. payrolls

WARSAW, Sept 6 (Reuters) - Central European assets were little changed on Friday, with local economic data failing to move markets as investors' attention turned to a key U.S. jobs report later in the day. Markets got a boost in recent days after the United States and China scheduled trade talks and the ADP National Employment Report in the United States showed private payrolls surging by 195,000 jobs this month after rising by 142,000 in July. That bolstered the chances of a strong reading of the U.S. non-farm payrolls (NFP) report, due out on Friday. "Strong print of the ADP report makes the positive surprise in NFP more likely," Santander Bank Polska analysts said in a note. A Warsaw-based currency dealer said that a positive payrolls print would be broadly neutral for the Polish zloty as the boost to sentiment in global markets from strong U.S. jobs data would also fuel a stronger dollar. The region's main currencies mostly ticked less than 0.1%weaker, hovering in recent trading ranges, with the zloty bid at 4.339 against the euro, the Czech crown at 25.835 and the Hungarian forint at 329.95. Stocks were mixed, with Poland's WIG 20 index rising 0.5%, while in Prague the PX index fell 0.64% and in Budapest shares were down 0.3% The region's assets have largely failed to benefit from some strong domestic economic data recently as investors warily eye risks coming from global trade tensions, a sputtering German economy and risks of a disorderly British exit from the European Union. Czech working day adjusted industrial output rose by a lower-than-expected 0.1% year-on-year in July, data from the statistics office showed on Friday. "(This) can still be viewed as a relatively positive number given the risks and compared with the manufacturing data in Germany," Erste Group Bank/Ceska Sporitelna economist Jiri Polansky wrote in a note. In Hungary, industrial output jumped by an annual 12% in July based on preliminary unadjusted data, after a 1.4% drop in June. "According to preliminary data, the surprisingly strong industrial performance is due to car manufacturing, while other important sectors depicted below-average growth rate," Peter Virovacz Senior Economist at ING in Hungary said in a note. Polish 10-year bond yields rose 1 basis point to 2.007%, while in the Czech Republic 10-year yields fell 7 basis points to 1.138 after rising sharply on Thursday. Poland sold bonds worth 5.7 billion zlotys ($1.5 billion) on Thursday at a switch tender, and announced that it had already covered about 20% of its 2020 borrowing needs. "The Ministry of Finance can talk about luck, because at the switch auction (it) managed to place treasury papers before the strongest sell-off hit in the second part of the session," PKO Bank Polski analysts said in a note. "In the coming days, the sell-off of bonds may continue... In the 10-year sector, a clearer and more durable break of psychological resistance at 2% is very likely."

CEE SNAPSHO ATMARKETS T 1146

CET CURRENC IES

Latest Previou Daily Change

s

bid close change in 2019EURCZK Czech <EURCZK 25.8350 25.8300 -0.02% -0.50%= crown =>EURHUF Hungary <EURHUF 329.950 329.690 -0.08% -2.69%= forint => 0 0EURPLN Polish <EURPLN 4.3392 4.3367 -0.06% -1.14%= zloty =>EURRON Romanian <EURRON 4.7339 4.7303 -0.08% -1.69%= leu =>EURHRK Croatian <EURHRK 7.4025 7.4033 +0.01% +0.10%= kuna =>EURRSD Serbian <EURRSD 117.500 117.540 +0.03% +0.68%= dinar => 0 0Note: calculated from 1800daily CET

change

Latest Previou Daily Change

s

close change in 2019.PX Prague 1032.79 1040.28 -0.72% +4.69%

00

.BUX Budapest 40062.6 40180.9 -0.29% +2.36%7 0.WIG20 Warsaw <.WIG20 2114.88 2106.89 +0.38% -7.10%>.BETI Buchares 9247.52 9251.48 -0.04% +25.24t %.SBITO Ljubljan <.SBITO 846.99 849.49 -0.29% +5.31%P a P>.CRBEX Zagreb <.CRBEX 1861.23 1865.86 -0.25% +6.43%>.BELEX Belgrade <.BELEX 749.86 746.85 +0.40% -1.55%15 15>.SOFIX Sofia <.SOFIX 574.17 574.17 +0.00% -3.41%>

BONDS

Yield Yield Spread Daily(bid) change vs Bund change

in

Czech spread

Republic

CZ2YT= 2-year <CZ2YT= 1.2160 0.0300 +207bp +3bpsRR RR> sCZ5YT= 5-year <CZ5YT= 0.9490 0.0260 +183bp +3bpsRR RR> sCZ10YT <CZ10YT 1.1850 -0.0270 +179bp -2bps=RR 10-year =RR> s

Poland

PL2YT= 2-year <PL2YT= 1.5860 0.0230 +244bp +2bpsRR RR> sPL5YT 5-year <PL5YT= 1.8090 0.0080 +269bp +2bpsRR RR> sPL10YT <PL10YT 2.0300 0.0340 +263bp +4bps=RR 10-year =RR> sFORWARD RATE AGREEME

NT

3x6 6x9 9x12 3M

interba nk

Czech <CZKFRA 2.10 1.98 1.83 2.14Rep ><PRIBO

R=>

Hungary <HUFFRA 0.30 0.32 0.37 0.24><BUBOR

=>

Poland <PLNFRA 1.74 1.72 1.69 1.72><WIBOR

=>

Note: are for askFRA prices

quotes

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($1 = 3.9347 zlotys)

(Reporting by Alan Charlish and Aleksandra Modrzejewska in Warsaw, Jason Hovet in Prague and Krisztina Than in Budapest; Editing by Susan Fenton)