September 25, 2018 / 3:13 PM / 3 months ago

CEE MARKETS-Polish stocks hit three-week high, CEE bond yields rise

    * FTSE index change helps to lift Polish stocks
    * Hungarian bonds rise despite FX bond issue
    * Investors await Fed comments from Wednesday meeting

 (Recasts on firmer Polish stocks and zloty, rise in Hungarian
bond yield)
    By Sandor Peto
    BUDAPEST, Sept 25 (Reuters) - Warsaw's blue-chip share index
 set a three-week high on Tuesday, helped by the
reclassification of Polish shares to "developed market" from
"advanced emerging" within FTSE global indexes.
    Eight Polish shares were also added this week to the STOXX
Europe 600.
    Warsaw outperformed both that index and all Central European
peers, except for Prague, rising 1.1 percent by 1400 GMT.
    More than half of the index gains stemmed from gains for PKO
BP, Poland's biggest lender, and PKN Orlen,
its biggest oil company. The stocks both were added to the STOXX
Europe 600 index on Monday.
    The bank's Deputy CEO Jakub Papierski was quoted by Polish
news agency PAP as saying that the advance of Warsaw stocks into
FTSE's developed-market basket was "very important for PKO" but
also improves perception of Poland as a "stable, developed
country with low volatility".
    The zloty currency firmed by 0.2 percent against
the euro while Hungary's forint, which usually moves
in tandem with the Polish currency, eased by 0.3 percent in thin
trade, hitting a one-week low against the zloty.
    Hungary's 10-year government bond yield rose 2 basis points
to 3.6 percent, in line with its Polish peer, which was bid at
3.284 percent. 
    They tracked a rise in the corresponding 10-year U.S.
Treasury yield above 3.1 percent and a rise in Bund yields after
European Central Bank chief Mario Draghi predicted a vigorous
pick-up in euro zone inflation. 
    One Budapest-based bond trader said the yield rise also
reflected some expectations that the Federal Reserve might
predict steeper-than-expected future interest rate increases at
its meeting on Wednesday.
    Hungarian government bonds have received some support this
week from a rare foreign currency bond issue by the government.
    It launched a sale of a seven-year euro-denominated
benchmark bond on Tuesday, with demand exceeding 2 billion euros
 ($2.36 billion), the IFR financial news service said.

    The positive impact faded on Tuesday because of uncertainty
over European Union fund inflows, the trader said.
    Hungary may lose European Union funds worth up to $1.8
billion because of a dispute with the European Commission, news
website G7.hu said on Tuesday, citing a government
report.

    
            CEE       SNAPSHOT   AT                         
            MARKETS             1600 CET            
                      CURRENCI                              
                      ES                            
                      Latest    Previous  Daily     Change
                      bid       close     change    in 2018
 Czech      <EURCZK=   25.6290   25.6180    -0.04%    -0.34%
 crown      >                                       
 Hungary    <EURHUF=  324.5300  323.6000    -0.29%    -4.20%
 forint     >                                       
 Polish     <EURPLN=    4.2924    4.2991    +0.16%    -2.70%
 zloty      >                                       
 Romanian   <EURRON=    4.6620    4.6580    -0.09%    +0.38%
 leu        >                                       
 Croatian   <EURHRK=    7.4290    7.4255    -0.05%    +0.02%
 kuna       >                                       
 Serbian    <EURRSD=  118.3500  118.2400    -0.09%    +0.13%
 dinar      >                                       
 Note:      calculated from               1800 CET          
 daily                                              
 change                                             
                                                            
                      Latest    Previous  Daily     Change
                                close     change    in 2018
 Prague                1105.58  1093.460    +1.11%    +2.54%
                                       0            
 Budapest             35833.24  35786.54    +0.13%    -9.00%
 Warsaw                2304.80   2280.60    +1.06%    -6.36%
 Bucharest             8337.88   8377.37    -0.47%    +7.53%
 Ljubljana  <.SBITOP    848.08    857.27    -1.07%    +5.17%
            >                                       
 Zagreb                1797.04   1810.29    -0.73%    -2.49%
 Belgrade   <.BELEX1    727.75    730.56    -0.38%    -4.22%
            5>                                      
 Sofia                  624.83    623.48    +0.22%    -7.77%
                      BONDS                                 
                      Yield     Yield     Spread    Daily
                      (bid)     change    vs Bund   change
                                                    in
 Czech                                              spread
 Republic                                           
   2-year   <CZ2YT=R    1.5650    0.0980   +209bps    +10bps
            R>                                      
   5-year   <CZ5YT=R    1.9270    0.0570   +202bps     +4bps
            R>                                      
   10-year  <CZ10YT=    2.2310    0.0120   +170bps     -1bps
            RR>                                     
 Poland                                                     
   2-year   <PL2YT=R    1.5700   -0.0130   +209bps     -1bps
            R>                                      
   5-year   <PL5YT=R    2.5700    0.0140   +266bps     +0bps
            R>                                      
   10-year  <PL10YT=    3.2840    0.0180   +275bps     +0bps
            RR>                                     
            FORWARD   RATE      AGREEMEN                    
                                T                   
                      3x6       6x9       9x12      3M
                                                    interban
                                                    k
 Czech Rep                1.95      2.14      2.26      1.57
            <PRIBOR=                                
            >                                       
 Hungary                  0.41      0.65      0.92      0.19
                                                    
 Poland                   1.77      1.82      1.87      1.72
                                                    
 Note: FRA  are for ask prices                              
 quotes                                             
 
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below