July 21, 2020 / 2:13 PM / 15 days ago

UPDATE 1-CEE MARKETS-Forint steady as Hungary cbank cuts base rate, assets firm after EU deal

 (Updates with Hungary rate cut)
    By Anita Komuves
    BUDAPEST, July 21 (Reuters) - The Hungarian forint held
steady on Tuesday after the country's central bank cut its its
base rate by 15 basis points to 0.6%, as expected, its second
reduction to shore up the economy hit by the coronavirus
pandemic.
    At 1328 GMT, the forint traded at 351.32 versus
the euro, up 0.34% on the day and broadly unchanged from levels
just before the decision, which was in line with analyst
forecasts in a Reuters poll.
    The rate cut had already been priced in by markets and was
not expected to heavily move the forint's exchange rate,
analysts said.
    Hungary's central bank has made the necessary easing in
short-term yields with its rate cut on Tuesday, deputy governor
Barnabas Virag said in a reply to Reuters questions after the
rate announcement.
    Currencies and stocks firmed across the region on Tuesday,
as European Union leaders struck a deal on the 750 billion euro
coronavirus recovery fund early in the morning at a summit that
lasted almost five days.    
    Eurozone shares hit their highest since early March after EU
leaders agreed on the stimulus package. Encouraging results from
several COVID-19 vaccine trials also supported the broader
market sentiment.
    CEE stocks tracked eurozone assets, with Budapest's blue
chip index leading gains, up 1.2% in afternoon trade.
Prague's assets strengthened 0.3% while Warsaw
was up 1.06%. Bucharest's stocks firmed 1.1%.
    Currencies also firmed in the region. The Polish zloty
 strengthened 0.5% to 4.433 versus the common currency.
     The Czech crown was up 0.9% on the day, trading
at 26.380 versus the euro at 1328 GMT. Earlier in the day it
touched 26.370, its strongest level in four months.     
    
                    CEE      SNAPSHO   AT                       
                    MARKETS  T        1528 CET           
                             CURRENC                            
                             IES                         
                             Latest   Previous  Daily    Change
                             bid      close     change   in 2020
 EURCZK=  Czech     <EURCZK  26.3800   26.6200   +0.91%   -3.59%
          crown     =>                                   
 EURHUF=  Hungary   <EURHUF  351.320  352.5000   +0.34%   -5.74%
          forint    =>             0                     
 EURPLN=  Polish    <EURPLN   4.4336    4.4555   +0.49%   -4.00%
          zloty     =>                                   
 EURRON=  Romanian  <EURRON   4.8392    4.8415   +0.05%   -1.05%
          leu       =>                                   
 EURHRK=  Croatian  <EURHRK   7.5280    7.5335   +0.07%   -1.10%
          kuna      =>                                   
 EURRSD=  Serbian   <EURRSD  117.570  117.6200   +0.04%   +0.00%
          dinar     =>             0                     
          Note:     calculated from             1800            
          daily                                 CET      
          change                                         
                                                                
                             Latest   Previous  Daily    Change
                                      close     change   in 2020
 .PX      Prague              956.03  952.8500   +0.33%  -14.31%
 .BUX     Budapest           35604.6  35181.69   +1.20%  -22.74%
                                   7                     
 .WIG20   Warsaw    <.WIG20  1860.12   1840.60   +1.06%  -13.49%
                    >                                    
 .BETI    Buchares           8582.90   8489.21   +1.10%  -13.98%
          t                                              
 .SBITOP  Ljubljan  <.SBITO   858.76    868.57   -1.13%   -7.25%
          a         P>                                   
 .CRBEX   Zagreb    <.CRBEX  1602.60   1592.21   +0.65%  -20.56%
                    >                                    
 .BELEX1  Belgrade  <.BELEX   664.03    658.88   +0.78%  -17.17%
 5                  15>                                  
 .SOFIX   Sofia     <.SOFIX   441.46    442.02   -0.13%  -22.30%
                    >                                    
                                                                
                             Yield    Yield     Spread   Daily
                             (bid)    change    vs Bund  change
                                                         in
          Czech                                          spread
          Republic                                       
 CZ2YT=R    2-year  <CZ2YT=   0.1100    0.0640   +078bp    +6bps
 R                  RR>                               s  
 CZ5YT=R    5-year  <CZ5YT=   0.4230   -0.0560   +109bp    -5bps
 R                  RR>                               s  
 CZ10YT=            <CZ10YT   0.9040    0.0540   +137bp    +5bps
 RR       10-year   =RR>                              s  
          Poland                                                
 PL2YT=R    2-year  <PL2YT=   0.1300    0.0040   +080bp    +0bps
 R                  RR>                               s  
 PL5YT=R    5-year  <PL5YT=   0.7590   -0.0250   +142bp    -2bps
 R                  RR>                               s  
 PL10YT=            <PL10YT   1.3240   -0.0160   +179bp    -2bps
 RR       10-year   =RR>                              s  
                    FORWARD                                     
                             3x6      6x9       9x12     3M
                                                         interba
                                                         nk
          Czech     <CZKFRA     0.31      0.31     0.33     0.34
          Rep       ><PRIBO                              
                    R=>                                  
          Hungary   <HUFFRA     0.61      0.58     0.56     0.70
                    ><BUBOR                              
                    =>                                   
          Poland    <PLNFRA     0.20      0.21     0.22     0.25
                    ><WIBOR                              
                    =>                                   
          Note:     are for ask                                 
          FRA       prices                               
          quotes                                         
          *********************************************         
          *****************                              
 
 

 (Additional reporting by Robert Muller in Prague; Editing by
Rashmi Aich and Shailesh Kuber)
  
 
 
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