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CEE MARKETS-Zloty halts gains, markets eye Supreme Court decision on FX loans

reuters.com · 09/02/2021 05:02
CEE MARKETS-Zloty halts gains, markets eye Supreme Court decision on FX loans

By Anita Komuves

- Central European currencies were mostly stable on Thursday, with the Polish zloty halting its gains from the past two sessions as investors were eyeing the Supreme Court that could issue a long-awaited ruling in foreign exchange loans later in the day.

The Supreme Court decision could clarify how holders of mortgages in Swiss francs should settle with banks after the decision to cancel the loan contract. The decision may decide the size of the banks' losses on these loans.

The Polish zloty EURPLN= was flat, halting its steady gains from the previous two sessions that followed a jump in inflation data that fuelled expectations of policy tightening later this year.

Elsewhere, the Czech crown EURCZK= firmed 0.1% to 25.334 versus the common currency.

The Hungarian forint EURHUF= edged up 0.09% to trade at 347.5 per euro, trading within its recent range between 347 and 350.

Government bond yields in Hungary were stable after a 7-8 basis point rise at the long end of the curve on Wednesday when they tracked rising core yields that followed hawkish comments by the European Central Bank, a fixed-income trader said.

Government bond yields across the euro area touched their highest levels in around six weeks on Wednesday, pushed up by hawkish rhetoric from policymakers that stoked unease over the future pace of ECB bond purchases. L1N2Q30H2

Last week longer-dated government bond yields in Hungary rose about 10 basis points after government bond sales were cut back at the first auction after the Hungarian central bank said that it would start winding down their purchases, which concerned investors. nL1N2PX0ME

Stocks in the region were mixed, with Prague .PX adding 0.24% while Budapest .BUX slid 0.53%. Warsaw's equities .WIG20 edged down 0.06% while Bucharest .BETI was 0.03% lower.





CEE MARKETS

SNAPSHOT

AT 1026 CET






CURRENCIES







Latest

Previous

Daily

Change




bid

close

change

in 2021

EURCZK=

Czech crown

EURCZK=

25.3340

25.3600

+0.10%

+3.53%

EURHUF=

Hungary forint

EURHUF=

347.5000

347.8200

+0.09%

+4.38%

EURPLN=

Polish zloty

EURPLN=

4.5070

4.5070

+0.00%

+1.16%

EURRON=

Romanian leu

EURRON=

4.9365

4.9349

-0.03%

-1.45%

EURHRK=

Croatian kuna

EURHRK=

7.5000

7.4905

-0.13%

+0.63%

EURRSD=

Serbian dinar

EURRSD=

117.5700

117.5800

+0.01%

+0.00%


Note: daily change

calculated from


1800 CET












Latest

Previous

Daily

Change





close

change

in 2021

.PX

Prague

.PX

1293.38

1290.2500

+0.24%

+25.92%

.BUX

Budapest

.BUX

51672.87

51946.96

-0.53%

+22.72%

.WIG20

Warsaw

.WIG20

2369.62

2371.16

-0.06%

+19.44%

.BETI

Bucharest

.BETI

12298.83

12302.26

-0.03%

+25.43%

.SBITOP

Ljubljana

.SBITOP

1196.86

1195.09

+0.15%

+32.86%

.CRBEX

Zagreb

.CRBEX

1971.40

1967.92

+0.18%

+13.35%

.BELEX15

Belgrade

.BELEX15

802.58

804.83

-0.28%

+7.21%

.SOFIX

Sofia

.SOFIX

564.93

565.11

-0.03%

+26.23%











Yield

Yield

Spread

Daily




(bid)

change

vs Bund

change in


Czech Republic





spread

CZ2YT=RR

2-year

CZ2YT=RR

1.7010

0.0050

+242bps

+1bps

CZ5YT=RR

5-year

CZ5YT=RR

1.7550

-0.0010

+244bps

+1bps

CZ10YT=RR

10-year

CZ10YT=RR

1.8280

-0.0010

+221bps

+1bps


Poland






PL2YT=RR

2-year

PL2YT=RR

0.4370

-0.0720

+115bps

-7bps

PL5YT=RR

5-year

PL5YT=RR

1.2340

-0.0160

+192bps

-1bps

PL10YT=RR

10-year

PL10YT=RR

1.8940

0.0000

+228bps

+1bps



FORWARD








3x6

6x9

9x12

3M interbank


Czech Rep

CZKFRAPRIBOR=

1.65

2.07

2.22

0.99


Hungary

HUFFRABUBOR=

2.11

2.25

2.32

1.60


Poland

PLNFRAWIBOR=

0.48

0.75

0.98

0.23


Note: FRA quotes

are for ask prices





**************************************************************





(Additional reporting by Alan Charlish in Warsaw; Editing by Rashmi Aich)

((komuves.anita@thomsonreuters.com)(+36 70 795 8815))

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