By Alan Charlish
WARSAW, Nov 13 (Reuters) - Central Europe's main currencies
continued to soften on Wednesday, as a better-than-expected
reading on German investor sentiment was offset by U.S.
President Donald Trump's speech that dashed hopes of a concrete
trade deal with China.
Trump on Tuesday said an initial trade deal with China could
happen "soon", but offered no new details on negotiations
despite rumours before the speech that he might announce a venue
and date for signing the deal.
"Donald Trump poured a bucket of cold water on investors'
heads," PKO BP said in a note.
At 0949 GMT, the Polish zloty was down 0.13%
against the euro at 4.2835. The Czech crown was down
0.16% at 25.57 while the Hungarian forint fell 0.09%
to 334.9.
There was more positive news from Germany, a key trading
partner for central European economies, as a ZEW survey showed
on Tuesday that the mood among German investors improved more
than expected in November.
ZEW said its monthly survey showed economic sentiment among
investors jumped to -2.1 from -22.8 in October.
In Poland, bond yields fell across the curve in line with
euro zone peers as Trump's remarks cast a shadow over recent
optimism.
Polish 2-year yields fell 2 basis points to
1.383% while 10-year yields fell 6 basis points to 2.097%.
"In the case of long-term yields, I mean the 10-year
benchmark, I would expect further declines in yields below 2.10%
over the short term," said Adam Antoniak, senior economist at
Pekao.
The Czech Republic auctioned 2027 and 2033 bonds on
Wednesday.
"Relatively shallow amount offered showing the finance
ministry's 2019 financing needs have been mostly covered,"
Komercni Banka rates trader Dalimil Vyskovsky said in a client
note.
"As was the case in a slightly weaker-than-expected auction
two weeks ago, they are unlikely to sell anything that would be
too cheap compared to the market or their own thinking."
Yields on the bonds were bid up
1-5 basis points in early trading on Wednesday.
Benchmark Czech 10-year yields fell one basis
point to 1.564%.
Stocks fell across the region, with Budapest's main index
shedding 0.53% and Warsaw's blue-chip WIG 20 index
falling 0.84%.
Polish energy group PGE fell 4.9% after its
guidance for weaker EBITDA in 2020 worried investors.
CEE SNAPSHOT AT
MARKETS 1049 CET
CURRENCI
ES
Latest Previous Daily Change
bid close change in 2019
Czech 25.5700 25.5300 -0.16% +0.54%
crown
Hungary 334.9000 334.6000 -0.09% -4.13%
forint
Polish 4.2835 4.2780 -0.13% +0.14%
zloty
Romanian 4.7645 4.7619 -0.05% -2.32%
leu
Croatian 7.4500 7.4475 -0.03% -0.54%
kuna
Serbian 117.2900 117.4450 +0.13% +0.86%
dinar
Note: calculated from 1800 CET
daily
change
Latest Previous Daily Change
close change in 2019
Prague 1081.56 1084.110 -0.24% +9.63%
0
Budapest 43260.15 43492.33 -0.53% +10.53%
Warsaw 2229.98 2248.81 -0.84% -2.05%
Bucharest 9691.27 9692.81 -0.02% +31.25%
Ljubljana 877.17 875.84 +0.15% +9.07%
Zagreb 1971.69 1971.08 +0.03% +12.74%
Belgrade <.BELEX15 766.06 762.55 +0.46% +0.57%
>
Sofia 558.04 558.24 -0.04% -6.13%
BONDS
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
2-year <CZ2YT=RR 1.4330 0.0600 +207bps +7bps
>
5-year <CZ5YT=RR 1.2830 0.0340 +185bps +6bps
>
10-year <CZ10YT=R 1.5640 -0.0110 +185bps +3bps
R>
Poland
2-year <PL2YT=RR 1.3830 -0.0200 +202bps -1bps
>
5-year <PL5YT=RR 1.7880 -0.0420 +235bps -2bps
>
10-year <PL10YT=R 2.0970 -0.0590 +239bps -1bps
R>
FORWARD RATE AGREEMEN
T
3x6 6x9 9x12 3M
interban
k
Czech Rep < 2.26 2.25 2.17 2.18
PRIBOR=>
Hungary < 0.27 0.30 0.34 0.19
BUBOR=>
Poland < 1.73 1.71 1.67 1.71
WIBOR=>
Note: FRA are for ask prices
quotes
