Wires

CEE MARKETS-Currencies give up previous day's gains

WARSAW, Jan 9 (Reuters) - Central European currencies on Thursday gave up gains from Wednesday when U.S. President Donald Trump had eased tensions by stepping back from further military action Iran. Trump tempered days of angry rhetoric and suggested Iran was "standing down" after it fired missiles at U.S. forces in Iraq.

In early trade, the region's main currencies retreated to Wednesday afternoon's levels. At 1012 GMT, the Polish zloty was down 0.29% against the euro at 4.2436. The Czech crown had shed 0.14% to be bid at 23.25 and the Hungarian forint fell 0.31% to 331.56. "Likely it is just some kind of quick moves, there was a rebound yesterday, maybe it's just a correction to that," said Peter Virovacz, senior economist, Hungary at ING. "Yesterday was quite positive after we realised there won't be a full blown war between Iran and the U.S." Stock markets, however, continued to rise as equities got a boost from the easing tensions in the Middle East. Warsaw's WIG 20 was up 1.56%, while Prague's PX index gained 0.33% and Budapest's main index strengthened 0.65%. In Budapest, OTP shares outperformed the wider Budapest market, rising 1.2%. OTP said on Wednesday that it was planning further expansion in Slovenia, and in new countries after buying the regional unit of France's Societe Generale last year. In Romania, the leu was little changed at 4.7749 against the euro after the central bank left its benchmark interest rate unchanged at 2.50% as expected on Wednesday, maintaining a cautious stance in the face of fiscal uncertainty and inflation risks ahead of two elections this year. Poland's central bank also left its benchmark interest rate unchanged at 1.5%, with central bank governor Adam Glapinski saying that a surprisingly high December flash CPI reading did not change his view that rates may stay on hold until his term ends in 2022. Poland's December flash CPI surprised economists on Tuesday, with a reading of 3.4% coming in well above the 2.9% expected by analysts in a Reuters poll and marking the highest level of inflation in central Europe's largest economy since 2012. Polish 10-year yields continued to rise, up 6.8 basis points on the day at 2.278% ahead of a bond auction worth 3-5 billion zlotys. Czech 10-year yields were up 1.4 basis points at 1.629%.

CEE MARKETS SNAPSHOT AT 1137

CET CURRENCIES

Latest Previous Daily Changebid close change in 2020EURCZK= Czech 25.2410 25.2375 -0.01%+0.76%

crown

EURHUF= Hungary 332.1500 330.9850 -0.35%

-0.30% forint

EURPLN= Polish 4.2450 4.2389 -0.14%+0.27%

zloty

EURRON= Romanian 4.7775 4.7761 -0.03%+0.23%

leu

EURHRK= Croatian 7.4470 7.4490 +0.03%

-0.02% kuna

EURRSD= Serbian 117.5200 117.5600 +0.03%+0.04%

dinar

Note: calculated from 1800daily CET

change

Latest Previous Daily Changeclose change in 2020.PX Prague 1121.89 1118.2200 +0.33%+0.56%.BUX Budapest 45154.22 44932.18 +0.49%

-2.02%

.WIG20 Warsaw 2150.08 2115.99 +1.61%

-0.00%

.BETI Bucharest 9924.82 9856.93 +0.69%

-0.53%

.SBITOP Ljubljana 940.25 937.81 +0.26%+1.55%.CRBEX Zagreb 2026.97 2024.81 +0.11%+0.47%.BELEX15 Belgrade 793.35 798.18 -0.61%

-1.04%

.SOFIX Sofia 575.98 575.75 +0.04%+1.38%

BONDS

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

Republic

CZ2YT=RR 2-year 1.7810 0.1060 +239bp+12bps

s

CZ5YT=RR 5-year 1.4330 -0.0580 +194bp

-7bps s

CZ10YT=RR 10-year 1.6290 0.0140 +187bp

-1bps s Poland

PL2YT=RR 2-year 1.5380 0.0020 +215bp+1bps

s

PL5YT=RR 5-year 1.9290 0.0320 +244bp+2bps

s

PL10YT=RR 10-year 2.2560 0.0460 +249bp+3bps

s

FORWARD RATE AGREEMENT3x6 6x9 9x12 3M

interbank

Czech Rep <PRIBOR= 2.25 2.26 2.26 2.17>Hungary 0.26 0.34 0.42 0.16Poland 1.75 1.77 1.79 1.71

Note: FRA are for ask prices quotes

(Reporting by Alan Charlish in Warsaw, jason Hovet in Prague and Krisztina Than in Budapest; Editing by Maju Samuel)