* Polish leaders to hold news conference at 0900 GMT
* Zloty firms, Polish stocks touch eight-month high
By Sandor Peto
BUDAPEST, Dec 21 (Reuters) - The zloty tested
5-week highs against the euro and Polish stocks touched an
8-month high on Wednesday ahead of a news conference by top
ruling party leaders likely to address the political crisis over
the rule of law in Poland.
Central Europe's healthy long-term economic growth prospects
have been supporting assets in the region as the end of the year
approaches, but domestic political issues have weighed on
sentiment in Poland, Romania and Bulgaria.
The Polish parliament lifted a temporary ban on media access
on Tuesday, which has been triggering protests, but the measure
did not defuse the crisis as the opposition said the government
would need to do more for democracy.
Ruling party Law and Justice (PiS) leader Jaroslaw Kaczynski
will hold a news conference at 0900 GMT, along with Prime
Minister Beata Szydlo and parliament speakers.
The zloty firmed 0.1 percent to 4.4045 against 6the euro by
0821 GMT and Polish government bond yields dropped 1-2 basis
points, with the 10-year paper bid trading at 3.43 percent.
The Warsaw stock exchange's bluechip index touched
an 8-month high in the second session in a row.
The leu also firmed, but Romanian government bonds
eased a shade.
Romanian President Klaus Iohannis has invited political
parties for talks on a new government, with the leftist Social
Democrat Party, the winner of elections held on Dec. 11,
expected to propose a prime minister candidate.
The president signalled earlier that he would not accept PSD
leader Liviu Dragnea as a prime minister candidate because
convicted earlier this year for rigging a 2012 referendum for
which he received a suspended jail sentence.
Bulgaria faces early elections next spring as talks to form
a new government under the mandate of a small right-wing party
failed on Tuesday.
Bulgarian stocks firmed a quarter of a percent.
CEE SNAP AT 0921
MARKETS SHOT CET
CURRENCIES
Late Prev Dail Chan
st ious y ge
bid clos chan in
e ge 2016
Czech <EURCZK 27.0 27.0 +0. -0.0
crown => 200 245 02% 8%
Hungary <EURHUF 310. 310. +0. 1.33
forint => 5000 7250 07% %
Polish <EURPLN 4.40 4.40 +0. -3.3
zloty => 45 77 07% 3%
Romanian <EURRON 4.51 4.51 +0. 0.11
leu => 40 67 06% %
Croatian <EURHRK 7.53 7.53 +0. 1.42
kuna => 20 35 02% %
Serbian <EURRSD 123. 123. +0. -1.6
dinar => 4700 6100 11% 2%
Note: calcula prev clos 1800
daily ted ious e at CET
change from
STOC
KS
Late Prev Dail Chan
st ious y ge
clos chan in
e ge 2016
Prague 918. 917. +0. -3.9
56 48 12% 5%
Budapest 3178 3171 +0. +32
8.83 3.50 24% .89%
Warsaw <.WIG20 1944 1940 +0. +4.
> .29 .46 20% 58%
Buchares 7011 7022 -0.1 +0.
t .50 .02 5% 10%
Ljubljan <.SBITO 702. 701. +0. +0.
a P> 99 46 22% 98%
Zagreb <.CRBEX 1968 1970 -0.1 +16
> .55 .48 0% .51%
Sofia <.SOFIX 574. 573. +0. +24
> 88 46 25% .73%
BOND
S
Yiel Yiel Spre Dail
d d ad y
(bid chan vs chan
) ge Bund ge
in
Czech spre
Republic ad
2-year <CZ2YT= -1.0 -0.0 -028 -6bp
RR> 64 64 bps s
5-year <CZ5YT= -0.1 0.02 +03 +3b
RR> 87 6 1bps ps
<CZ10YT 0.49 0.00 +02 +3b
10-year =RR> 8 9 5bps ps
Poland
2-year <PL2YT= 1.99 -0.0 +27 +0b
RR> 7 03 8bps ps
5-year <PL5YT= 2.74 -0.0 +32 -1bp
RR> 3 16 4bps s
<PL10YT 3.44 -0.0 +31 +1b
10-year =RR> 1 06 9bps ps
FORWARD RATE AGREEMENT
3x6 6x9 9x12 3M
inte
rban
k
Czech <CZKFRA 0.28 0.24 0.22 0
Rep ><PRIBO
R=>
Hungary <HUFFRA 0.36 0.39 0.47 0.39
><BUBOR
=>
Poland <PLNFRA 1.75 1.77 1.8 1.73
><WIBOR
=>
Note: are for
FRA ask
quotes prices
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(Additional reporting by Jakub Iglewski in Warsaw)