* Crown joins forint, zloty easing
* Bond yields at multi-month lows after CPI, PMI, retail
data
* Inflation may soon enter retreat phase
* Agrokor woes weigh on Croatian stocks ahead of parliament
debate
(Adds plunge of Croatian stocks, new prices)
By Sandor Peto and Jason Hovet
BUDAPEST/PRAGUE, April 4 (Reuters) - Central European
currencies eased and bonds extended gains on Tuesday after a
batch of weaker-than-expected economic data.
The zloty and the forint eased in tandem
by about 0.3 percent against the euro by 1453.
After an initial 0.1 percent easing, the Czech crown
steadied, and trading at 27.05 it was firmer by 0.1
percent.
The crown's volatility surged in the past week. It had
traded near 27 for most of the past three-and-a-half years,
after the CNB launched a cap at that level to fight deflation
risks.
Its commitment to keep the weak crown regime expired on
Friday and now it can remove the cap any time.
Speculation for a crown rise led to heavy buying of the
currency in the past months, but fears that it has been
overbought has lifted volatility in crown markets.
"There is a nervous mood in the market. Nobody knows when
the central bank will decide (on the end of the intervention
regime)," one dealer said. "The central bank is still sitting
around the 27.02 level. I don't think they are buying at higher
levels."
The yield on Czech 10-year bonds dropped 8 basis points to
0.95 percent. Poland's corresponding yield touched 4-month lows
a shade below 3.4 percent.
Expectations for a retreat in inflation in the region helped
bonds, one trader said.
Poland was the first in the region to publish March
inflation data and the 2 percent annual figure published on
Friday was below analysts' 2.3 percent forecast.
Monday's Czech, Hungarian and Polish PMI manufacturing index
figures for March showed steady economic growth, but were below
expectations.
Hungary's statistics office said on Tuesday that the annual
rise in retail sales slowed to 1.2 percent in February from 3.8
percent in January.
"We do not change our economic growth forecast, but negative
risks seem to strengthen," said Peter Virovacz, analyst of ING
in Budapest about the data in a note.
Uncertainty over the future of troubled food and retail
group Agrokor weighed on Croatian equities ahead of Wednesday's
parliament discussion of a bill aimed at protecting the economy
against the failure of big firms.
The Zagreb bourse's main index fell 1.6 percent,
with Agrokor unit ice cream maker Ledo leading the
decline, falling by 14 percent.
7 basis CEE SNAPS AT 1453
points t MARKETS HOT CET
CURRENCIES
Lates Previ Daily Chang
t ous e
bid close chang in
e 2017
Czech crown 27.04 27.06 +0.0 -0.13
30 60 9% %
Hungary 309.5 308.5 -0.33 -0.23
forint 400 050 % %
Polish 4.257 4.245 -0.27 3.44%
zloty 4 8 %
Romanian 4.544 4.548 +0.0 -0.20
leu 0 3 9% %
Croatian 7.442 7.428 -0.18 1.52%
kuna 0 5 %
Serbian 123.7 123.7 -0.02 -0.32
dinar 500 300 % %
Note: daily calculate previ close 1800
change d from ous at CET
STOCK
S
Lates Previ Daily Chang
t ous e
close chang in
e 2017
Prague 980.5 985.2 -0.48 +6.3
1 0 % 9%
Budapest 31900 31788 +0.3 -0.32
.58 .40 5% %
Warsaw 2230. 2219. +0.4 +14.
03 88 6% 48%
Bucharest 8170. 8155. +0.1 +15.
96 65 9% 33%
Ljubljana 786.2 775.4 +1.4 +9.5
4 1 0% 7%
Zagreb 2002. 2035. -1.59 +0.4
88 31 % 0%
Belgrade <.BELEX15 729.5 730.0 -0.07 +1.7
> 4 7 % 0%
Sofia 635.6 633.1 +0.4 +8.4
9 3 0% 0%
BONDS
Yield Yield Sprea Daily
d
(bid) chang vs chang
e Bund e in
Czech sprea
Republic d
2-year <CZ2YT=RR -0.21 -0.02 +059 +0bp
> 9 2 bps s
5-year <CZ5YT=RR 0.091 -0.01 +056 +2bp
> 2 bps s
10-year <CZ10YT=R 0.947 -0.08 +070 -5bps
R> bps
Poland
2-year <PL2YT=RR #VALU 0.003 #VALU +3bp
> E! E! s
5-year <PL5YT=RR #VALU -0.01 #VALU +2bp
> E! 3 E! s
10-year <PL10YT=R #VALU 0.013 #VALU +5bp
R> E! E! s
FORWARD RATE AGREEMENT
3x6 6x9 9x12 3M
inter
bank
Czech Rep < 0.28 0.32 0.36 0
PRIBOR=>
Hungary < 0.21 0.26 0.36 0.18
BUBOR=>
Poland < 1.77 1.79 1.81 1.73
WIBOR=>
Note: FRA are for
quotes ask
prices
**************************************************
************
(Additional reporting by Igor Ilic in Zagreb Editing by Stephen
Powell and Pritha Sarkar)