Bonds News

CEE MARKETS-Stocks get a boost from U.S. stimulus hopes

    WARSAW, Aug 11 (Reuters) - Central European stocks tracked
global peers higher on Tuesday, as risk sentiment worldwide
received a boost from hopes that an agreement can be reached on
a U.S. stimulus package.
    U.S. President Donald Trump tweeted on Monday that Democrats
wanted to meet to make a deal on coronavirus-related economic
relief, after talks between Democrats and members of his
administration broke down last week.
    "Probably until we know the shape of the fiscal plan in the
United States, hopes that it will be good for the market will
cause share prices to rise," said Bartosz Kulesza, an analyst at
Pekao in Warsaw.
    At 0928 GMT Warsaw's WIG 20 was up 1.84%, while
Prague's PX index had risen 1.86% and the main index in
Budapest was up 0.27%.
    Currencies were looking for direction ahead of data later
this week, which will include GDP for Poland and Romania.
    The Polish zloty was 0.05% firmer against the euro
at 4.4002. The Czech crown and the Hungarian forint
 were both 0.03% weaker at 26.20 and 344.87
respectively, while the Romanian leu softened 0.11% to
    Hungarian headline inflation accelerated to an
annual 3.8% in July from 2.9% in June, while core inflation rose
to a seven-year high, the Central Statistics Office (KSH) said.
Core inflation HUCPIC=ECI came in at an annual 4.5%, rising from
4% in June.
    The National Bank of Hungary said that tax-adjusted core
inflation was 4.1% in July versus 3.5% in June.
    "The central bank's (MNB) concern that inflation could
continue to fall well below its inflation target was a key
argument for the 15 basis point rate cuts in June and July,"
Commerzbank said in a note.
    "If inflation continues to rise and the market doubts that
the MNB will react accordingly, the HUF is likely to come under
pressure. In this respect, the market will be watching the MNB's
interest rate meeting at the end of August with great interest."
    The National Bank of Hungary will hold government bond
auctions on Tuesday. The NBH restarted government bond purchases
last month after a two-month break.
    Yields on the longest-dated Hungarian government bonds have
come down substantially, by around 40 bps, since the central
bank last month resumed its quantitative-easing programme.

    Czech benchmark 10-year yields rose almost 10
basis points to 0.903% on Tuesday, while Polish 10-year yields
 rose just under 2 basis points to 1.285%.
                CEE       SNAPSHOT   AT                         
                MARKETS             1128 CET            
                          Latest    Previous  Daily     Change
                          bid       close     change    in 2020
 Czech crown    <EURCZK=   26.2000   26.1920    -0.03%    -2.93%
 Hungary        <EURHUF=  344.8700  344.7500    -0.03%    -3.98%
 forint         >                                       
 Polish zloty   <EURPLN=    4.4002    4.4025    +0.05%    -3.27%
 Romanian leu   <EURRON=    4.8345    4.8290    -0.11%    -0.96%
 Croatian kuna  <EURHRK=    7.4800    7.4785    -0.02%    -0.46%
 Serbian dinar  <EURRSD=  117.5000  117.6000    +0.09%    +0.06%
 Note: daily    calculated from               1800 CET          
 change Latest    Previous  Daily     Change
                                    close     change    in 2020
 Prague                     931.91  914.8900    +1.86%   -16.47%
 Budapest                 36401.47  36302.78    +0.27%   -21.01%
 Warsaw                    1856.73   1823.15    +1.84%   -13.64%
 Bucharest                 8689.18   8620.18    +0.80%   -12.91%
 Ljubljana      <.SBITOP    850.15    846.64    +0.41%    -8.18%
 Zagreb                    1594.08   1591.24    +0.18%   -20.98%
 Belgrade       <.BELEX1    672.36    672.64    -0.04%   -16.13%
 Sofia                      433.99    431.99    +0.46%   -23.61%
                          Yield     Yield     Spread    Daily
                          (bid)     change    vs Bund   change
 Czech                                                  spread
   2-year       <CZ2YT=R    0.1380    0.0760   +083bps     +7bps
   5-year       <CZ5YT=R    0.3650    0.0250   +107bps     +2bps
   10-year      <CZ10YT=    0.9030    0.0960   +141bps     +8bps
   2-year       <PL2YT=R    0.1380    0.0040   +083bps     +0bps
   5-year       <PL5YT=R    0.6730    0.0100   +138bps     +0bps
   10-year      <PL10YT=    1.2850    0.0190   +179bps     +0bps
                          3x6       6x9       9x12      3M
 Czech Rep                    0.33      0.33      0.38      0.34
 Hungary                      0.63      0.63      0.62      0.60
 Poland                       0.19      0.17      0.17      0.23
 Note: FRA      are for ask prices                              


 (Reporting by Alan Charlish in Warsaw, Aniat Komuves in
Budapest and Radu Marinas in Bucharest; Editing by Nick Macfie)