Wires

CEE MARKETS-Far from coronavirus fears, CEE assets post mild gains

Anita Komuves

BUDAPEST, Feb 10 (Reuters) - Fears of an impact from the coronavirus outbreak mostly bypassed emerging Europe early on Monday, with the region considered a comparative backwater, enabling most markets to rise slightly. The Hungarian forint moved sideways as investors awaited key economic data later in the week and a swap tender that the central bank has used to fine tune liquidity. Investors will keenly eye the National Bank of Hungary's afternoon swap tender, which the bank has begun to cut back as the forint has hit record lows and eased more than 2% against the euro this year, underperforming regional peers. "If the NBH does not accept any bids again, the forint can strengthen slightly," a Budapest-based trader said, adding that the market awaited January inflation figures due out on Thursday even more keenly than the tender. A significant uptick in the year-on-year inflation number could lead to a negative effect on the forint, she said. Inflation may have accelerated to 4.3% in January from 4.0% in December, according to a Reuters poll. That exceeds the NBH's target range of 3% plus/minus 1%. Hungary's ultra-dovish central bank has kept interest rates at a record low. The Czech crown was a touch stronger, hanging on the weak side of the pyschological 25 per euro level. The crown briefly broke that key level for the first time since 2012 last week. Analysts at bank CSOB said the central bank's surprise rate hike last week would continue to buoy the currency even as the global market remained bearish. The Czech central bank raised the main two-week repo rate by 25 basis points to 2.25%. While Asian and several European stock markets dropped on Monday morning because of continuing global worries about the coronavirus outbreak, most CEE markets posted gains. Prague gained 0.2%, Budapest was up by 0.8% while Romanian markets were up by 0.3%. Warsaw was down by 0.6%.

CEE SNAPSHOT ATMARKETS 1140 CET

CURRENCI ES

Latest Previous Daily Changebid close change in 2020Czech 25.0180 25.0570 +0.16% +1.65%

crown

Hungary 337.9000 338.1000 +0.06% -2.00%

forint

Polish 4.2686 4.2748 +0.15% -0.29%

zloty

Romanian 4.7660 4.7610 -0.10% +0.47%

leu

Croatian 7.4518 7.4565 +0.06% -0.09%

kuna

Serbian 117.5000 117.5900 +0.08% +0.06%

dinar

Note: calculated from 1800 CET

daily change

Latest Previous Daily Changeclose change in 2020Prague 1113.25 1110.720 +0.23% -0.21%

0

Budapest 44854.21 44486.92 +0.83% -2.67%Warsaw 2097.93 2110.20 -0.58% -2.43%Bucharest 10053.59 10025.59 +0.28% +0.76%Ljubljana 978.93 978.16 +0.08% +5.73%Zagreb 2029.32 2027.35 +0.10% +0.59%Belgrade <.BELEX15 810.55 812.86 -0.28% +1.11%>Sofia 572.80 569.62 +0.56% +0.82%Yield Yield Spread Daily(bid) change vs Bund change

in

Czech spread

Republic

2-year <CZ2YT=RR 1.9570 0.1370 +260bps +15bps>5-year <CZ5YT=RR 1.6430 -0.0660 +226bps -5bps>10-year <CZ10YT=R 1.5940 0.0570 +200bps +8bps

R> Poland

2-year <PL2YT=RR 1.5260 -0.0060 +217bps +0bps>5-year <PL5YT=RR 1.7520 -0.0160 +237bps +0bps>10-year <PL10YT=R 2.0840 0.0000 +249bps +2bps

R> FORWARD

3x6 6x9 9x12 3M

interban k

Czech Rep < 2.37 2.32 2.24 2.39

PRIBOR=>

Hungary < 0.34 0.42 0.50 0.32

BUBOR=>

Poland < 1.73 1.71 1.69 1.71

WIBOR=> Note: FRA are for ask prices quotes

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(Additional reporting by Jason Hovet in Prague, Editing by William Maclean)