WARSAW, Jan 23 (Reuters) - The Hungarian forint touched a new record low against the euro on Thursday, with central European currencies taking a hit from worsening risk sentiment due to rising fears over the spread of a new flu-like virus that started in China. The forint was the region's worst performing currency in 2019 and has shed a further 1.7% so far in 2020. Hungary's ultra-dovish central bank is not expected to take any action on interest rates at a policy meeting next week. The forint firmed near the 334 mark on Monday, when the central bank unexpectedly rejected all bids at a weekly FX swap tender, a move that curbed the banking sector's liquidity by 38 billion forints. But the impact has been short-lived. At 1011 GMT, the forint was bid at 336.80 against the euro, down 0.1% on Thursday, after touching a record low of 337.55 earlier in the session. "It is hard to imagine that in the long-run the central bank will manage the exchange rate with this EUR/HUF swap tender in the 330-335 range," a Budapest-based currency dealer said. "The move to reject bids at Monday's tender helped the forint firm near the 334 mark, but it could not firm past that level. It remains to be seen what the central bank does at next Monday's tender and at Tuesday's rate meeting." All 18 analysts surveyed in a Reuters poll said Hungary's base rate would remain at 0.9%, with inflation set to retreat slowly from December's seven-year highs and economic growth to lose steam in coming years. The Czech crown, which has already scaled seven-year highs this year, was down 0.1% against the euro at 25.167, while the Polish zloty fell 0.1% to 4.246. The Romanian leu was stable. Bond yields fell in line with core-market peers as investors looked for safety amid fears around the coronavirus outbreak and awaited a meeting of the European Central Bank, which is set to launch a broad policy review that is likely to redefine its inflation goal. At 0952 GMT, benchmark Polish 10-year yields were down just over 1 basis point at 2.257% and Czech ten-year yields fell over 5 basis points to 1.683%. The yield on Czech bonds due 2033 has dropped over 20 basis points in the past two days, which a trader attributed to speculations that it could be added to a JPMorgan emerging markets bond index. Central European stocks were mixed, with Warsaw's WIG 20 index rising 0.3%. Prague's PX index touched its highest level since August 2011 before giving up its gains to turn negative on the day. London- and Prague-listed antivirus software company Avast has been the PX index's biggest gainer this year with a 16% rise, but was down 1.2% by mid-morning. CEE SNAPSHO AT MARKETS T 1111 CET CURRENC IES Latest Previou Daily Change s bid close change in 2020 EURCZK Czech <EURCZK 25.1670 25.1405 -0.11% +1.05% = crown => EURHUF Hungary <EURHUF 336.800 336.420 -0.11% -1.68% = forint => 0 0 EURPLN Polish <EURPLN 4.2460 4.2407 -0.12% +0.24% = zloty => EURRON Romanian <EURRON 4.7790 4.7788 -0.00% +0.19% = leu => EURHRK Croatian <EURHRK 7.4455 7.4375 -0.11% -0.00% = kuna => EURRSD Serbian <EURRSD 117.520 117.550 +0.03% +0.04% = dinar => 0 0 Note: calculated from 1800 daily CET change Latest Previou Daily Change s close change in 2020 .PX Prague 1139.90 1140.48 -0.05% +2.18% 00 .BUX Budapest 44508.9 44597.0 -0.20% -3.42% 1 5 .WIG20 Warsaw <.WIG20 2150.04 2146.56 +0.16% -0.00% > .BETI Buchares 10210.1 10131.7 +0.77% +2.33% t 9 7 .SBITO Ljubljan <.SBITO 965.91 967.78 -0.19% +4.33% P a P> .CRBEX Zagreb <.CRBEX 2056.02 2051.37 +0.23% +1.91% > .BELEX Belgrade <.BELEX 794.30 803.45 -1.14% -0.92% 15 15> .SOFIX Sofia <.SOFIX 583.86 584.90 -0.18% +2.77% > Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic CZ2YT= 2-year <CZ2YT= 1.7350 -0.0160 +233bp -1bps RR RR> s CZ5YT= 5-year <CZ5YT= 1.6160 -0.0590 +216bp -6bps RR RR> s CZ10YT <CZ10YT 1.6790 -0.0560 +196bp -4bps =RR 10-year =RR> s Poland PL2YT= 2-year <PL2YT= 1.5420 -0.0290 +213bp -3bps RR RR> s PL5YT= 5-year <PL5YT= 1.9380 -0.0120 +248bp -1bps RR RR> s PL10YT <PL10YT 2.2620 -0.0080 +254bp +1bps =RR 10-year =RR> s FORWARD 3x6 6x9 9x12 3M interba nk Czech <CZKFRA 2.23 2.22 2.19 2.17 Rep ><PRIBO R=> Hungary <HUFFRA 0.35 0.48 0.60 0.19 ><BUBOR => Poland <PLNFRA 1.75 1.77 1.79 1.71 ><WIBOR => Note: are for ask FRA prices quotes ******************************************** ****************** (Reporting by Alan Charlish in Warsaw, Gergely Szakacs in Budapest and Jason Hovet in Prague; Editing by Shinjini Ganguli)
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