for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

CORRECTED-CEE MARKETS-Currencies stable, Polish QE schedule in focus

 (Corrects paragraph 3 to show that the Polish central bank did
not buy government bonds last week, only government-secured
bonds from Polish national development bank BGK)
    By Anita Komuves
    BUDAPEST, May 31 (Reuters) - Central European currencies
were mostly stable on Monday as trade volume was low with
markets in the United States and Britain closed, while Polish
bond markets were eyeing the central bank's schedule of QE
purchases for signs of tapering.
    Polish bond yields were unmoved as markets were looking
forward to the central bank's schedule of June bond purchases,
due later in the day.
    Last week the bank bought less than a third of the bonds
that investors offered to sell, which some analysts understood
as a sign of a potential start to tapering. It only bought
government-secured bonds from Polish national development bank
BGK, and did not buy treasury bonds. 
    "It will be important to observe whether the central bank
will stick to two operations per month or scale it down to only
one, which could indicate a potentially earlier end of the
program than the year-end (our baseline)," Erste Bank wrote.
    The Polish and Hungarian central banks started quantitative
easing programs last year to help their economies weather the
economic crisis caused by the pandemic.
    The National Bank of Hungary said after its rate meeting
last week that its bond purchase programme remained a "crucial"
policy tool and "the NBH will continue to use the programme by
maintaining a lasting presence in the market."
    Currencies kept hovering near strong levels they recently
hit on rate hike expectations that were fuelled by
higher-than-expected CPI data and signals from central banks.
    The Polish zloty edged up 0.06% to trade at 4.4805
per euro. The Czech crown slid 0.2% to 25.510 versus
the common currency.  
    The Hungarian forint was 0.1% lower at 348.35 to
the euro, still trading near 9-month highs.
    "Although short positions against the forint have
drastically been cut back recently, there is little chance for
further significant firming in the short term," CIB Bank wrote.
    "The further direction for the currency could be decided by
the June rate meeting." 
    Stocks were mixed, with Prague and Warsaw gaining more
than 0.2% each while Budapest slid 0.15%. Bucharest
 added 0.72%.
    
    
                    CEE      SNAPSHO   AT                       
                    MARKETS  T        1039 CET           
                             CURRENC                            
                             IES                         
                             Latest   Previous  Daily    Change
                             bid      close     change   in 2021
 EURCZK=  Czech     <EURCZK  25.5100   25.4600   -0.20%   +2.82%
          crown     =>                                   
 EURHUF=  Hungary   <EURHUF  348.350  348.0000   -0.10%   +4.13%
          forint    =>             0                     
 EURPLN=  Polish    <EURPLN   4.4805    4.4830   +0.06%   +1.76%
          zloty     =>                                   
 EURRON=  Romanian  <EURRON   4.9195    4.9200   +0.01%   -1.11%
          leu       => Note:     calculated from             1800            
          daily                                 CET      
          change Latest   Previous  Daily    Change
                                      close     change   in 2021
 .PX      Prague             1166.14  1163.510   +0.23%   +13.53
                                             0                 %
 .BUX     Budapest           46161.7  46233.29   -0.15%   +9.63%
                                   2                     
 .WIG20   Warsaw    <.WIG20  2240.50   2236.31   +0.19%   +12.93
                    >                                          %
 .BETI    Buchares           11504.7  11421.04   +0.73%   +17.33
          t                        3                           %
 .SBITOP  Ljubljan  <.SBITO  1142.76   1143.10   -0.03%   +26.85
          a         P>                                         %
 .CRBEX   Zagreb    <.CRBEX  1927.60   1928.52   -0.05%   +10.83
                    >                                          %
 .BELEX1  Belgrade  <.BELEX   769.01    778.88   -1.27%   +2.73%
 5                  15>                                  
 .SOFIX   Sofia     <.SOFIX   528.85    528.59   +0.05%   +18.17
                    >                                          %
                                                                
                             Yield    Yield     Spread   Daily
                             (bid)    change    vs Bund  change
                                                         in
          Czech                                          spread
          Republic                                       
 CZ2YT=R    2-year  <CZ2YT=   0.5250   -0.0390   +118bp    -4bps
 R                  RR>                               s  
 CZ5YT=R    5-year  <CZ5YT=   1.4790   -0.0380   +203bp    -5bps
 R                  RR>                               s  
 CZ10YT=            <CZ10YT   1.7370   -0.0170   +190bp    -4bps
 RR       10-year   =RR>                              s  
          Poland                                                
 PL2YT=R    2-year  <PL2YT=   0.3490    0.0050   +101bp    +0bps
 R                  RR>                               s  
 PL5YT=R    5-year  <PL5YT=   1.2840   -0.0150   +183bp    -3bps
 R                  RR>                               s  
 PL10YT=            <PL10YT   1.9000    0.0070   +206bp    -2bps
 RR       10-year   =RR>                              s  
                    FORWARD                                     
                             3x6      6x9       9x12     3M
                                                         interba
                                                         nk
          Czech     <CZKFRA     0.69      0.93     1.26     0.39
          Rep       ><PRIBO                              
                    R=>                                  
          Hungary   <HUFFRA     1.26      1.50     1.67     0.91
                    ><BUBOR                              
                    =>                                   
          Poland    <PLNFRA     0.33      0.48     0.67     0.21
                    ><WIBOR                              
                    =>                                   
          Note:     are for ask                                 
          FRA       prices                               
          quotes                                         
          *********************************************         
          *****************                              
 
    
    

 (Additional reporting by Jason Hovet in Prague; Editing by
Christina Fincher)
  
 
 
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up