(Updates with stock losses, Czech bond auction) By Anita Komuves and Jason Hovet BUDAPEST/PRAGUE, March 11 (Reuters) - Warsaw's blue-chip index slumped on Wednesday to its lowest since April 2009 as central European stocks slipped further amid deepening worries over the coronavirus outbreak, while investors also pushed into Czech bonds. The region's currencies were a mixed bag, with the Czech crown losing half a percent, staying under pressure as markets weigh whether the central bank could reverse its recent interest rate tightening as the economy comes under strain. Czech National Bank Governor Jiri Rusnok reiterated the bank was ready to cut if needed, but now was not yet the time. Markets have priced in a steep five-plus rate cuts over the next year, which analysts have called too aggressive. At a planned state bond auction, the Czech Finance Ministry sold twice as much as originally planned, boosting its offer for new bonds due 2031 as yields have come down sharply in the last month. "Demand was strong again," a dealer said. On the equity front, Warsaw dropped 5.87%, continuing a slide to bring its 2020 losses to 30%, amid growing nervousness about the impact that the new virus, which has infected more and more people around Europe, will have. The Bank of England cut rates by 50 bps on Wednesday and the region's players are looking to Thursday's meeting of the European Central Bank, expecting measures to ease the economic fallout from the coronavirus outbreak. Regional central bank officials have said they were assessing the economic damage caused by the virus but have sent mixed messages about the need for rate cuts. In Poland, two rate-setters said this week that it was time to consider a rate cut, while a third called for a wait-and-see strategy before changing rates. Recent "commentary by some central banks from the region highlighted the stark divergence between central bankers' views of rate stability and the market's implied easing, which now expects a cut from most countries in the region at their next meeting," Morgan Stanley wrote in a note. The Polish zloty inched up 0.05% on Wednesday and Hungary's forint lost less than 0.1%. CEE SNAPSHOT AT MARKETS 1729 CET CURRENCI ES Latest Previou Daily Change s bid close change in 2020 EURCZK Czech <EURCZK 25.7450 25.6175 -0.50% -1.22% = crown => EURHUF Hungary <EURHUF 336.0500 335.790 -0.08% -1.46% = forint => 0 EURPLN Polish <EURPLN 4.3166 4.3186 +0.05% -1.39% = zloty => EURRON Romanian <EURRON 4.8189 4.8215 +0.05% -0.63% = leu => EURHRK Croatian <EURHRK 7.5750 7.5455 -0.39% -1.71% = kuna => EURRSD Serbian <EURRSD 117.6100 117.600 -0.01% -0.03% = dinar => 0 Note: calculated from 1800 daily CET change Latest Previou Daily Change s close change in 2020 .PX Prague 885.10 912.760 -3.03% -20.66% 0 .BUX Budapest 36536.24 38380.6 -4.81% -20.72% 0 .WIG20 Warsaw <.WIG20 1505.64 1599.48 -5.87% -29.97% > .BETI Buchares 8381.47 8722.11 -3.91% -15.99% t .SBITO Ljubljan <.SBITO 827.84 843.94 -1.91% -10.59% P a P> .CRBEX Zagreb <.CRBEX 1591.42 1665.47 -4.45% -21.12% > .BELEX Belgrade <.BELEX 752.28 757.33 -0.67% -6.16% 15 15> .SOFIX Sofia <.SOFIX 495.12 494.81 +0.06% -12.85% > Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic CZ2YT= 2-year <CZ2YT= 1.7660 -0.0810 +272bp -8bps RR RR> s CZ5YT= 5-year <CZ5YT= 1.1450 -0.1040 +206bp -13bps RR RR> s CZ10YT <CZ10YT 1.1320 -0.0120 +188bp -6bps =RR 10-year =RR> s Poland PL2YT= 2-year <PL2YT= 1.2330 0.0560 +219bp +6bps RR RR> s PL5YT= 5-year <PL5YT= 1.4830 0.1450 +240bp +12bps RR RR> s PL10YT <PL10YT 1.7130 0.1700 +246bp +12bps =RR 10-year =RR> s FORWARD 3x6 6x9 9x12 3M interba nk Czech <CZKFRA 1.82 1.39 1.08 2.34 Rep ><PRIBO R=> Hungary <HUFFRA 0.64 0.58 0.55 0.67 ><BUBOR => Poland <PLNFRA 1.42 1.15 1.03 1.69 ><WIBOR => Note: FRA quotes are for ask prices ********************************************* ***************** (Additional reporting by Jason Hovet in Prague; Editing by Sherry Jacob-Phillips, William Maclean)
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