August 21, 2019 / 9:25 AM / 2 months ago

CEE MARKETS-FX mixed ahead of central bankers' US meeting, Czech bonds ease

    BUCHAREST, Aug 21 (Reuters) - Central European currencies
were mixed in thin volumes on Wednesday, mirroring the euro
ahead of a key central bankers meeting in Wyoming on Friday,
with the crown leading regional losses and Czech bond yields
edging up for a fourth day running.
    Recovering from multi-year lows, Czech yields, the region's
lowest, were quoted at 1.017% by 0850 GMT, up 2.5 basis points
on the day for the benchmark 10-year bond.
    "The crown continues to faithfully copy global market
moods," CSOB analysts said in a note, citing U.S. President
Donald Trump's latest China trade dispute comments, general
uncertainty in the run-up to Friday's Jackson Hole meeting and a
fall of Italy's government as the main drivers of sentiment.
    "Without significant domestic impulses, the crown will stay
in a slightly negative mood," CSOB added.
    During a White House visit by Romanian President Klaus
Iohannis on Tuesday, Trump said the current U.S. standoff with
China over trade was necessary, adding that China still wants to
make a deal: "Somebody had to take China on."
    Officials from major central banks will gather at Jackson
Hole in Wyoming with markets focused on a scheduled speech by
Federal Reserve Chair Jerome Powell.
    His comments are of particular interest after last week's
inversion of the U.S. yield curve - widely regarded as a signal
of recession - boosted expectations the Fed would lower interest
rates at its September policy meeting.
    The Czech central bank has paused a two-year tightening
cycle since May and left the direction of its next move open.
    Central European bond yields have dropped steadily since May
as the European Central Bank and U.S. Federal Reserve turned
dovish in the face of slowing global trade. 
     By 0900 GMT the crown eased 0.1% to 25.8 against
the euro, while Romania's leu traded at 4.728. The
Polish zloty firmed 0.2% on the day to trade at 4.3504
and Hungary's forint was flat.

            CEE        SNAPSHOT   AT  1036                  
            MARKETS              CET                 
                       CURRENCI                             
                       ES                            
                       Latest    Previous    Daily   Change
                       bid       close       change  in 2019
 Czech                  25.8000     25.7830  -0.07%   -0.36%
 crown                                               
 Hungary               327.4000    327.5400   +0.04   -1.93%
 forint                                           %  
 Polish                  4.3528      4.3615   +0.20   -1.45%
 zloty                                            %  
 Romanian                4.7283      4.7268  -0.03%   -1.57%
 leu                                                 
 Croatian                7.3835      7.3823  -0.02%   +0.36%
 kuna                                                
 Serbian               117.6700    117.6800   +0.01   +0.54%
 dinar                                            %  
 Note:      calculated from                  1800           
 daily                                       CET     
 change                                              
                                                            
                       Latest    Previous    Daily   Change
                                 close       change  in 2019
 Prague                 1039.93   1033.7400   +0.60   +5.41%
                                                  %  
 Budapest              39778.20    40005.90  -0.57%   +1.63%
 Warsaw                 2112.65     2110.11   +0.12   -7.20%
                                                  %  
 Bucharest              9090.35     9060.27   +0.33   +23.11
                                                  %        %
 Ljubljana               863.67      866.50  -0.33%   +7.39%
 Zagreb                 1875.58     1875.95  -0.02%   +7.25%
 Belgrade   <.BELEX15    751.57      752.42  -0.11%   -1.33%
            >                                        
 Sofia                   579.65      575.65   +0.69   -2.49%
                                                  %  
                       BONDS                                
                       Yield     Yield       Spread  Daily
                       (bid)     change      vs      change
                                             Bund    in
 Czech                                               spread
 Republic                                            
   2-year   <CZ2YT=RR    1.1450      0.0150   +204b    +1bps
            >                                    ps  
   5-year   <CZ5YT=RR    0.7760      0.0160   +169b    +0bps
            >                                    ps  
   10-year  <CZ10YT=R    1.0050      0.0120   +166b    -2bps
            R>                                   ps  
 Poland                                                     
   2-year   <PL2YT=RR    1.5140      0.0030   +241b    -1bps
            >                                    ps  
   5-year   <PL5YT=RR    1.7200      0.0580   +263b    +4bps
            >                                    ps  
   10-year  <PL10YT=R    1.9300      0.0820   +259b    +5bps
            R>                                   ps  
            FORWARD    RATE      AGREEMENT                  
                       3x6       6x9         9x12    3M
                                                     interba
                                                     nk
 Czech Rep          <      2.08        1.84    1.66     2.14
            PRIBOR=>                                 
 Hungary            <      0.31        0.32    0.33     0.26
            BUBOR=>                                  
 Poland             <      1.72        1.65    1.59     1.72
            WIBOR=>                                  
 Note: FRA  are for ask prices                              
 quotes                                              
 **************************************************         
 ************                                        
 

 (Reporting by Radu Marinas in Bucharest, Jason Hovet in Prague
and Alan Charlish in Warsaw; Editing by Mark Heinrich)
  
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