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UPDATE 2-CEE MARKETS-Forint rebounds as cenbank announces hike of one-week deposit rate

 (Updates with cenbank comments, forint reaction)
    By Anita Komuves
    BUDAPEST, June 22 (Reuters) - The Hungarian forint jumped
and bond yields retreated on Tuesday after the central bank
raised its base rate and said it will hike the one-week deposit
rate as well, clearing up uncertainty around its policy. 
    The National Bank of Hungary raised its base rate by 30
basis points to 0.9%, slightly exceeding forecasts, becoming the
first in the European Union to tighten policy as the economy
recovers from the pandemic.
    The forint jumped to 351.85 per euro, gaining 0.61% on the
day, and government bond yields retreated after the central bank
said it would bring its crisis instrument, the one-week deposit
rate, in line with the base rate.
    Earlier, the forint slid as far as 356 against the common
currency and government bond yields rose as uncertainty about
the one-week deposit rate concerned investors when the decision
about the base rate was announced.
    "The rise in the one-week rate helped, and the bank saying
that it could hike rates monthly also boosted the forint," an FX
trader in Budapest said.    
    Government bond yields were unmoved on the short end of the
curve and 4-5 points lower on the long end on the day, a
fixed-income trader said.
    "The one-week rate will be 0.9%, as expected, and the market
is now pricing in a transparent, credible monetary policy," he
said.
    The Czech National Bank is also expected to raise its base
rate at its Wednesday meeting. A Reuters poll forecasts a 25
basis points hike.
    The Czech crown edged down 0.07% to trade at
25.535 per euro.
    Elsewhere, the Polish zloty firmed 0.17% to 4.5205
per euro, while the Romanian leu edged down 0.07% to
4.9260. 
    Stocks in the region were mixed, with Budapest down
0.19% while Warsaw firmed 0.21%. Prague was 0.24%
lower, while Bucharest eased 0.51%. 
    
    
                   CEE       SNAPSHO   AT                       
                   MARKETS   T        1621 CET           
                             CURRENC                            
                             IES                         
                             Latest   Previous  Daily    Change
                             bid      close     change   in 2021
 EURCZK=  Czech    <EURCZK=  25.5350   25.5160   -0.07%   +2.72%
          crown    >                                     
 EURHUF=  Hungary  <EURHUF=  351.850  354.0000   +0.61%   +3.09%
          forint   >               0                     
 EURPLN=  Polish   <EURPLN=   4.5205    4.5280   +0.17%   +0.86%
          zloty    >                                     
 EURRON=  Romania  <EURRON=   4.9260    4.9226   -0.07%   -1.24%
          n leu    >                                     
 EURHRK=  Croatia  <EURHRK=   7.4968    7.4990   +0.03%   +0.68%
          n kuna   >                                     
 EURRSD=  Serbian  <EURRSD=  117.460  117.5750   +0.10%   +0.09%
          dinar    >               0                     
          Note:    calculated from              1800            
          daily                                 CET      
          change Latest   Previous  Daily    Change
                                      close     change   in 2021
 .PX      Prague             1163.16  1165.950   -0.24%   +13.24
                                             0                 %
 .BUX     Budapes            48288.1  48379.62   -0.19%   +14.68
          t                        2                           %
 .WIG20   Warsaw             2224.19   2219.45   +0.21%   +12.11
                                                               %
 .BETI    Buchare            11548.5  11608.18   -0.51%   +17.77
          st                       3                           %
 .SBITOP  Ljublja  <.SBITOP  1122.95   1138.83   -1.39%   +24.65
          na       >                                           %
 .CRBEX   Zagreb             1981.15   1981.15   +0.00%   +13.91
                                                               %
 .BELEX1  Belgrad  <.BELEX1   776.74    775.57   +0.15%   +3.76%
 5        e        5>                                    
 .SOFIX   Sofia               550.21    557.84   -1.37%   +22.94
                                                               %
                                                                
                             Yield    Yield     Spread   Daily
                             (bid)    change    vs Bund  change
                                                         in
          Czech                                          spread
          Republi                                        
          c                                              
 CZ2YT=R           <CZ2YT=R   0.3270   -0.0250   +098bp    -3bps
 R        2-year   R>                                 s  
 CZ5YT=R           <CZ5YT=R   1.6120   -0.0250   +217bp    -3bps
 R        5-year   R>                                 s  
 CZ10YT=           <CZ10YT=   1.7430   -0.0020   +190bp    -2bps
 RR       10-year  RR>                                s  
          Poland                                                
 PL2YT=R           <PL2YT=R   0.3920    0.0060   +104bp    +1bps
 R        2-year   R>                                 s  
 PL5YT=R           <PL5YT=R   1.3520    0.0220   +191bp    +2bps
 R        5-year   R>                                 s  
 PL10YT=           <PL10YT=   1.8130    0.0520   +197bp    +4bps
 RR       10-year  RR>                                s  
                   FORWARD                                      
                             3x6      6x9       9x12     3M
                                                         interba
                                                         nk
          Czech                 0.83      1.10     1.41     0.44
          Rep      <PRIBOR=                              
                   >                                     
          Hungary               1.45      1.82     1.95     0.95
                                                         
          Poland                0.35      0.58     0.79     0.21
                                                         
          Note:    are for ask                                  
          FRA      prices                                
          quotes                                         
          *********************************************         
          *****************                              
 

    
    

 (Reporting by Anita Komuves; editing by Uttaresh.V and Krishna
Chandra Eluri)
  
 
 
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