June 4, 2018 / 8:44 AM / 19 days ago

CEE MARKETS-Slovenian bonds ease, stocks rise after Jansa's election win

    * Anti-immigration, pro-tax-cut party wins Slovenia's
election
    * Slovenian winner party faces tough coalition talks
    * Slovenian bond yields rise slightly
    * CEE currencies firm, Romanian cbank to hold rare depo
tender

    By Sandor Peto and Radu-Sorin Marinas
    BUDAPEST/BUCHAREST, June 4 (Reuters) - Slovenian government
bond prices eased slightly and stocks mostly firmed on Monday
after Sunday's election was won by an anti-immigration
opposition party which promises tax cuts and speeding up
privatisation.
    The centre-right Democratic Party (SDS) of Janez Jansa faces
a struggle to form a government and some analysts believe an
early election is possible. 
    Slovenia's economy is seen growing robustly this year like
its Central European peers, at a 5 percent rate, and is in a
much better shape than in 2013 when the country narrowly avoided
a bailout for its banks.    
    Slovenian government bond yields were bid higher by 3-4
basis points, while yields elsewhere in Central Europe were
mostly steady or a touch lower.
    Slovenian shares mostly rose and Ljubljana's main index
 gained 0.8 percent by 0800 GMT, in line with a rise in
most Central European indices as Friday's strong U.S. job data
buoyed global stock markets.
    Budapest led a regional rise with a 1.4 percent gain
as heavyweight OTP Bank surged by 3 percent after
piercing the key psychological line at 10,000 forints on Friday,
to trade at 10,380 forints ($38.05). 
    Regional currencies firmed as the dollar did not extend its
rally which last month caused a sell-off in emerging markets,
and the tightly watched U.S. 10-year Treasury yield stayed below
the 3 percent mark.
    The Czech crown gained a quarter of percent
against the euro, while the zloty and the forint
 firmed 0.3 percent.
    "We cannot rule out that Fitch will follow S&P and raise
(Poland's) rating outlook to positive (in a review on Friday)
due to better than expected macroeconomic situation and very
good fiscal performance," BZ WBK analysts said in a note, adding
that the zloty could firm further.
    Investors ignored a divergence in the policies of regional
central banks. 
    If the crown does not firm further, the Czech bank may bring
forward a rate hike earlier than expected for around the end of
this year, some analysts said.
    Poland's central bank is expected to reaffirm its loose
policy at its meeting on Wednesday.
    The leu, which is more tightly managed by the
Romanian central bank than its main regional peers, firmed 0.1
percent to 4.6575 versus the euro.
    It rebounded from Friday's four-week low as the bank said
 that it would hold a rare one-week deposit tender on
Monday at a fixed rate of 2.5 percent.
    The tender could tighten liquidity in Romanian markets.
    
               CEE MARKETS  SNAPSH   AT  1000 CET         
                            OT                      
                            CURRENCIES                    
                            Latest  Previo  Daily   Change
                                    us              
                            bid     close   change  in
                                                    2018
 Czech crown                25.744  25.805   +0.24  -0.84%
                                 0       5       %  
 Hungary                    319.15  320.08   +0.29  -2.70%
 forint                         00      00       %  
 Polish zloty               4.2925  4.3057   +0.31  -2.73%
                                                 %  
 Romanian leu               4.6575  4.6632   +0.12   0.42%
                                                 %  
 Croatian                   7.3805  7.3878   +0.10   0.64%
 kuna                                            %  
 Serbian                    117.96  118.15   +0.16   0.37%
 dinar                          00      00       %  
 Note: daily   calculated   previo  close   1800          
 change        from         us      at      CET     
                            STOCKS                        
                            Latest  Previo  Daily   Change
                                    us              
                                    close   change  in
                                                    2018
 Prague                     1082.1  1081.0   +0.10   +0.37
                                 1       4       %       %
 Budapest                   36471.  35952.   +1.44  -7.38%
                                31      68       %  
 Warsaw                     2209.0  2190.2   +0.86  -10.24
                                 9       6       %       %
 Bucharest                  8069.7  8080.1  -0.13%   +4.08
                                 1       0               %
 Ljubljana                  896.77  889.86   +0.78   +11.2
                                                 %      1%
 Zagreb                     1846.3  1846.3   +0.00   +0.19
                                 2       8       %       %
 Belgrade                   740.12  741.03  -0.12%  -2.59%
 Sofia                      638.86  637.89   +0.15  -5.70%
                                                 %  
                            BONDS                         
                            Yield   Yield   Spread  Daily
                            (bid)   change  vs      change
                                            Bund    in
 Czech                                              spread
 Republic                                           
   2-year                    0.974   0.121   +161b   +11bp
                                                ps       s
   5-year                    1.423   0.013   +165b   +2bps
                                                ps  
   10-year                   1.965    0.02   +158b   +1bps
                                                ps  
 Poland                                                   
   2-year                     1.58   0.003   +222b   -1bps
                                                ps  
   5-year                    2.399  -0.028   +263b   -3bps
                                                ps  
   10-year                   3.194  -0.045   +281b   -6bps
                                                ps  
               FORWARD      RATE    AGREEMENT             
                            3x6     6x9     9x12    3M
                                                    interb
                                                    ank
 Czech Rep             <PR    1.04    1.16    1.27       0
               IBOR=>                               
 Hungary               <BU    0.07     0.1    0.18    0.12
               BOR=>                                
 Poland                <WI    1.76    1.76     1.8     1.7
               BOR=>                                
 Note: FRA     are for ask                                
 quotes        prices                               
 *********************************************************
 *****
 
($1 = 272.8000 forints)

 (Reporting by Sandor Peto)
  
 
 
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