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Radu-Sorin Marinas

CEE MARKETS-Tax worry hits Bucharest stocks, Hungarian bond yields fall

14 Jan 2019

* Bucharest stocks fall on worry over new bank tax * Romanian inflation retreats further as expected * Central banks supports leu via deposit tool * Hungarian bond yields resume fall ahead of CPI data (Adds BRD stock fall, Romanian bond and central bank deposit tenders, new comments, Hungarian bond yields fall) By Sandor Peto and Radu-Sorin Marinas BUDAPEST/BUCHAREST, Jan 14 Romanian stocks hit a 2-year low as concerns over 2019 tax increases on the bank and energy sectors have returned. Sentiment in Central Europe turned sour anyway as a surprise fall in China's exports turned the spotlight again on global economic slowdown worries. Bucharest's blue-chip index fell more than 4 percent, below 2-year lows reached last month after the government announced plans for changes in tax and pensions rules. The measures included a tax on bank assets, linked in an unconventional way to interbank rates which are also in the focus of monetary policy. Banca Transilvania fell 9.5 percent and BRD Groupe Societe Generale shed 7.5 percent. "There's a lot of uncertainty in the market on the new banking tax," one Bucharest-based foreign stocks trader said. Investors still do not know details of the base of the tax and whether it would also apply to mandatory reserves, the trader added. Late on Friday, the European Commission also warned Romania, which holds the EU's rotating presidency, over the government's plans to decriminalise some forms of corruption. The leu shrugged off a continuing fall in Romania's annual inflation to 3.3 percent in December from 3.4 percent in November. The drop from levels above 5 percent last year to within the central bank's 1.5-3.5 percent target range increases the chance that the bank will not increase its interest rates further, analysts said. The government sold less 2023-expiry bonds than planned at an auction, with the average yield rising to 4.41 percent from 4.34 percent. But the leu firmed a shade to 4.68 against the euro as the central bank reduced market liquidity through its one-week deposit tool. "The disinflation process in Romania that enabled ROMGBs (Romanian government bonds) to take part in a broader EM rally in recent weeks is set to bottom out," Raiffeisen analysts said in a note. Hungarian bond yields, however, resumed their fall which stalled in the first week of the year. Yields were fixed lower by about 10 basis points along the curve, with the 10-year yield set at 2.78 percent. The market is optimistic that December inflation data due on Tuesday will show a further drop from 3.1 percent in the annual rate in November, one Budapest-based trader said. "The Fed may not increase rates further, the ECB may tighten later and there are global recession fears: global trends support Hungarian bonds," the trader added. CEE SNAPSHOT AT MARKETS 1539 CET CURRENCI ES Latest Previous Daily Change bid close change in 2019 Czech <EURCZK= 25.5690 25.5660 -0.01% +0.54% crown > Hungary <EURHUF= 321.4400 321.4000 -0.01% -0.11% forint > Polish <EURPLN= 4.2900 4.2938 +0.09% -0.01% zloty > Romanian <EURRON= 4.6800 4.6830 +0.06% -0.56% leu > Croatian <EURHRK= 7.4350 7.4312 -0.05% -0.34% kuna > Serbian <EURRSD= 118.3200 118.4300 +0.09% -0.02% dinar > Note: calculated from 1800 CET daily change Latest Previous Daily Change close change in 2019 Prague 998.14 1011.440 -1.31% +1.17% 0 Budapest 40549.30 40886.06 -0.82% +3.60% Warsaw 2320.21 2335.10 -0.64% +1.91% Bucharest 6926.41 7240.73 -4.34% -6.19% Ljubljana <.SBITOP 811.66 803.83 +0.97% +0.92% > Zagreb 1735.70 1734.51 +0.07% -0.75% Sofia 567.87 567.46 +0.07% -4.47% BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year <CZ2YT=R 1.7910 0.0920 +239bps +10bps R> 5-year <CZ5YT=R 1.7150 -0.0200 +206bps +0bps R> 10-year <CZ10YT= 1.8580 0.0040 +164bps +2bps RR> Poland 2-year <PL2YT=R 1.3480 -0.0190 +195bps -1bps R> 5-year <PL5YT=R 2.1640 -0.0310 +251bps -1bps R> 10-year <PL10YT= 2.7480 -0.0080 +253bps +1bps RR> FORWARD RATE AGREEMEN T 3x6 6x9 9x12 3M interban k Czech Rep 2.14 2.18 2.20 2.01 <PRIBOR= > Hungary 0.24 0.46 0.70 0.13 Poland 1.74 1.73 1.73 1.72 Note: FRA are for ask prices quotes ************************************************* ************* (Reporting by Sandor Peto, editing by Ed Osmond)

CEE MARKETS-Bucharest stocks approach 2-year lows on tax worry

14 Jan 2019

* Bucharest stocks fall 2.2 pct before partial recovery * New taxes weigh on the outlook of Romanian stocks * Romanian inflation retreats further as expected By Sandor Peto and Radu-Sorin Marinas BUDAPEST/BUCHAREST, Jan 14 Romanian stocks fell as much as 2.2 percent on Monday, approaching 2-year lows as concerns over 2019 tax increases on the bank and energy sectors have returned. Sentiment in Central Europe turned sour anyway as a surprise fall in China's exports turned the highlight on global economic slowdown concerns again, hitting Asian and European stocks. Bucharest's blue-chip index got within a one-percent distance from its pre-Christmas 2-year lows reached after the government announced plans for changes in tax and pensions rules. The measures included a tax on bank assets, in an unconventional way linked to interbank rates which are also in the focus of monetary policy. Some details of its application remain unclear. The measures are unlikely to keep the budget deficit below the European Union's threshold, 3 percent of economic output, and creating uncertainty in the business environment may make a slowdown in economic growth bigger, analysts said. "Should foreign banks curb lending, as happened in Hungary for instance (in the early 2010s), the adverse impact on the cycle might well offset some of these (government) revenue gains," Morgan Stanley analysts said in a note. Late on Friday, the European Commission also warned Romania, which holds the EU's rotating presidency, over the government's plans to decriminalise some forms of corruption. Bucharest's stock index halved its initial loss to 1.1 percent by 0936 GMT. Budapest's blue-chip index fell at the same rate, retreating from a one-year high reached last week. The drop in Romania was led by an over 2 percent decline in the shares of Banca Transilvania, one of the country's biggest lenders. The leu shrugged off a continuing fall in Romania's annual inflation to 3.3 percent in December from 3.4 percent in November. The drop from levels above 5 percent last year to within the central bank's 1.5-3.5 percent target range increases the chance that the bank will not increase its interest rates further, analysts said. "There are risks on the rise that Romanian rate setters would not resume rate hikes (on the one hand due to banking tax, on the other hand due to ECB postponement risks)," Raiffeisen analyst Stephan Imre said in a note. With the Romanian disinflation process bottoming out, the country's bonds could start to reverse the past weeks' sharp decline in regional bond yields, he said. An auction of 2023-expiry Romanian bonds could still create demand around secondary market bids of 4.37 percent as the bond's tenor is in demand from a broad range of investors, ING analysts said in a note. CEE SNAPSHOT AT MARKETS 1036 CET CURRENCI ES Latest Previous Daily Change bid close change in 2019 Czech <EURCZK= 25.5600 25.5660 +0.02% +0.58% crown > Hungary <EURHUF= 321.2000 321.4000 +0.06% -0.04% forint > Polish <EURPLN= 4.2948 4.2938 -0.02% -0.12% zloty > Romanian <EURRON= 4.6785 4.6830 +0.10% -0.52% leu > Croatian <EURHRK= 7.4350 7.4312 -0.05% -0.34% kuna > Serbian <EURRSD= 118.3000 118.4300 +0.11% +0.00% dinar > Note: calculated from 1800 CET daily change Latest Previous Daily Change close change in 2019 Prague 1007.42 1011.440 -0.40% +2.11% 0 Budapest 40441.43 40886.06 -1.09% +3.33% Warsaw 2329.24 2335.10 -0.25% +2.31% Bucharest 7162.05 7240.73 -1.09% -3.00% Ljubljana <.SBITOP 808.50 803.83 +0.58% +0.53% > Zagreb 1736.86 1734.51 +0.14% -0.68% Belgrade <.BELEX1 696.20 702.40 -0.88% -8.60% 5> Sofia 568.54 567.46 +0.19% -4.36% BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year <CZ2YT=R 1.7070 0.0090 +230bps +1bps R> 5-year <CZ5YT=R 1.7310 -0.0040 +207bps +1bps R> 10-year <CZ10YT= 1.8370 -0.0170 +162bps +0bps RR> Poland 2-year <PL2YT=R 1.3420 -0.0250 +193bps -2bps R> 5-year <PL5YT=R 2.1700 -0.0250 +250bps -1bps R> 10-year <PL10YT= 2.7460 -0.0100 +253bps +1bps RR> FORWARD RATE AGREEMEN T 3x6 6x9 9x12 3M interban k Czech Rep 2.14 2.18 2.20 2.01 <PRIBOR= > Hungary 0.25 0.46 0.68 0.13 Poland 1.73 1.73 1.73 1.72 Note: FRA are for ask prices quotes ************************************************* ************* (Reporting by Sandor Peto, editing by Ed Osmond)

Romania says political infighting won't hamper its EU presidency

10 Jan 2019

BRUSSELS/BUCHAREST Political divisions will not undermine Romania's six-month EU presidency, top officials from Bucharest said on Thursday, as the European Commission expressed concerns over whether the country was ready to lead the bloc until mid-2019.

CORRECTED-CEE MARKETS-Stocks rise, forint and crown trade near multi-month highs

07 Jan 2019

(Corrects lead to read "risk appetite" not "risk aversion") * Warsaw leads rise in stocks, U.S. jobs data boosts risk appetite * Zloty hovers to 90-day moving average, crown and forint off high * Romanian central banker warns over policy independence * Polish 10-year yield drops again after Friday's rebound By Sandor Peto and Radu-Sorin Marinas BUDAPEST/BUCHAREST, Jan 7 Central European stocks mostly firmed on Monday as strong U.S. jobs data released on Friday increased risk appetite in global markets while the region's currency markets remained cautious. Although Warsaw led the region's mild equity gains, with its blue-chip index rising by 0.8 percent by 0947 GMT, the zloty led losses, shedding a quarter of a percent. Trading at 4.2985 versus the euro, it was still not weaker than its 90-day moving average. The Czech crown touched a 3-1/2-month high before retreating to 25.566 versus the euro, flat from Friday, while the forint retreated from the brink of 5-month highs beyond 320.8, and traded at 321.17. Data released by Hungary on Monday showed a slight slowdown in the annual growth of retail sales to 5.2 percent in November. But wages continue to surge as the region's labour markets are tight, probably boosting imports and nudging short-term interbank interest rates higher this year, analysts said. Czech interest rates should continue to rise until there is a clear view of a recession risk or signs that inflation is tamed, hawkish central bank (CNB) board member Ales Michl said in daily Mlada Fronta Dnes on Monday. Even before the CNB's February meeting, Romania and Poland's central banks will decide on interest rates this week and both are expected to keep them on hold. Romanian central bank board member Daniel Daianu said on the bank's blog on Sunday that the tax on commercial banks' assets, launched by the government last month to help rein in a rise in the budget deficit, constrains monetary policy. Further comments from Governor Mugur Isarescu, whose term will expire this year, will be closely watched on Tuesday. The leu traded a touch weaker, at 4.6633 against the euro, but Bucharest's stock index rose slightly, extending this year's gains to 4 percent. At 7,678 points, the index was still about 1,000 points below early December levels before a plunge after the government announced its tax plans for 2019, which hit several business sectors, including banks. In the region's government bond markets, Poland's 10-year yield dropped 4 basis points to 2.76 percent, after a 7 basis point rise on Friday, tracking a rebound in U.S. yields. Hungary's corresponding yield stayed near Friday's increased levels, at 2.89 percent. "This is a natural correction after a big decline (in December) in the local market," one Budapest-based dealer said. CEE SNAPSHOT AT MARKETS 1047 CET CURRENCI ES Latest Previous Daily Change bid close change in 2019 Czech <EURCZK= 25.5660 25.5700 +0.02% +0.55% crown > Hungary <EURHUF= 321.1700 321.0000 -0.05% -0.03% forint > Polish <EURPLN= 4.2985 4.2890 -0.22% -0.21% zloty > Romanian <EURRON= 4.6633 4.6611 -0.05% -0.20% leu > Croatian <EURHRK= 7.4310 7.4359 +0.07% -0.28% kuna > Serbian <EURRSD= 118.2500 118.3500 +0.08% +0.04% dinar > Note: calculated from 1800 CET daily change Latest Previous Daily Change close change in 2019 Prague 1006.50 1004.210 +0.23% +2.02% 0 Budapest 40117.39 40145.18 -0.07% +2.50% Warsaw 2303.03 2284.95 +0.79% +1.16% Bucharest 7678.10 7665.19 +0.17% +3.99% Ljubljana <.SBITOP 802.25 801.50 +0.09% -0.25% > Zagreb 1732.31 1729.79 +0.15% -0.94% Belgrade <.BELEX1 731.79 731.79 +0.00% -3.93% 5> Sofia 578.92 579.83 -0.16% -2.61% BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year <CZ2YT=R 1.6110 -0.0690 +221bps -7bps R> 5-year <CZ5YT=R 1.7510 0.0370 +208bps +5bps R> 10-year <CZ10YT= 1.7670 0.0040 +158bps +2bps RR> Poland 2-year <PL2YT=R 1.4700 -0.0050 +207bps -1bps R> 5-year <PL5YT=R 2.2420 -0.0400 +257bps -3bps R> 10-year <PL10YT= 2.7820 -0.0070 +259bps +1bps RR> FORWARD RATE AGREEMEN T 3x6 6x9 9x12 3M interban k Czech Rep 2.08 2.18 2.18 2.01 <PRIBOR= > Hungary 0.32 0.54 0.81 0.13 Poland 1.75 1.77 1.77 1.72 Note: FRA are for ask prices quotes ************************************************* ************* (Reporting by Sandor Peto, editing by Ed Osmond)

IMF says Romania risks missing its fiscal deficit goal

12 Nov 2018

BUCHAREST, Nov 12 Romania risks missing its budget deficit goal this year, the International Monetary Fund warned on Monday, recommending the country reassess wage and pension hike plans.

CEE MARKETS-Bond auctions draw strong demand despite Hungary's CPI rise

08 Nov 2018

* Hungary's CPI unexpectedly rises in Oct, lifting yields * Budapest, Bucharest high-yielding bond sales draw strong demand * Serbian central meets, holds fire (Recasts with Hungary's and Romania's bond auctions, rise in Romanian central bank's inflation forecast, new comments) By Sandor Peto and Radu-Sorin Marinas BUDAPEST/BUCHAREST, Nov 8 Hungarian bond yields rose after inflation unexpectedly picked up in October to its highest level in almost six years, fuelling demand at the government's bi-weekly auctions on Thursday. A bond auction was also well-bid in Romania, where bonds offer an even higher yield premium over euro zone peers, then Hungary. Yields even dropped in Bucharest's secondary market, even though the central bank (NBR) slightly increased its inflation forecasts for 2019 to 2.9 percent. That is still within its 1.5-3.5 percent target range and well below this year's levels around 5 percent. The revision had been priced in, ING analyst Ciprian Dascalu said. Interbank markets are awash in money both in Budapest, where the central bank (NBH) keeps its base rate at record lows of 0.9 percent, and in Bucharest where the bank injected funds into markets via its repo auctions in the past weeks. Romania's 2-year bond yield was bid at 3.78 percent in the secondary market, down 4 basis points. The 10-year Romanian yield was bid at 4.75 percent at 1348 GMT, down 21 basis points, but still 430 basis points above the corresponding Bunds. Hungary's 10-year yield rose 9 basis points to 3.64 percent, after statistics showed a surprise rise in annual inflation to 3.8 percent in October, near the top of the NBH's 2-4 percent target range, from September's 3.6 percent. The country's 2020-expiry bond yields rose by only 1-2 basis points to around 1 percent. But one of the steepest yield curves in the world can flatten next year if the NBH starts to reverse its monetary stimulus, one Budapest-based trader said. "Yields may be attractive, given the risks attached to euro zone bonds, including Italy's budget and (German Chancellor Angela) Merkel's future," the trader said. A rise in volatile energy prices have helped inflation pick up across the region even though its robust economic growth shows the signs of slowing. The NBH said its underlying inflation measures also showed a pick-up in October, but market participants said it was unlikely to start to tighten policy before next year. The forint briefly touched a 3-month high of 320.9 against the euro just after the inflation figures. Elsewhere in the region, the dinar firmed a shade as the Serbian central bank met. It is expected to keep its benchmark rate on hold at 3 percent. Regional stock indices were mixed, driven by earnings reports. Weaker than expected results drove Hungarian pharmaceuticals Richter down by 2.3 percent, while oil group MOL gained 1.7 percent and Czech lender Komercni Banka firmed by 2 percent. CEE SNAPSHOT AT MARKETS 1501 CET CURRENCI ES Latest Previous Daily Change bid close change in 2018 Czech <EURCZK= 25.9000 25.8810 -0.07% -1.38% crown > Hungary <EURHUF= 321.1900 321.4000 +0.07% -3.20% forint > Polish <EURPLN= 4.2865 4.2885 +0.05% -2.57% zloty > Romanian <EURRON= 4.6599 4.6605 +0.01% +0.42% leu > Croatian <EURHRK= 7.4310 7.4343 +0.04% -0.01% kuna > Serbian <EURRSD= 118.2600 118.3600 +0.08% +0.20% dinar > Note: calculated from 1800 CET daily change Latest Previous Daily Change close change in 2018 Prague 1082.20 1075.790 +0.60% +0.37% 0 Budapest 38309.55 38198.00 +0.29% -2.71% Warsaw 2268.44 2276.65 -0.36% -7.83% Bucharest 8680.71 8671.98 +0.10% +11.96% Ljubljana <.SBITOP 812.93 807.33 +0.69% +0.81% > Zagreb 1786.31 1783.95 +0.13% -3.07% Belgrade <.BELEX1 749.36 747.15 +0.30% -1.37% 5> Sofia 595.19 592.62 +0.43% -12.14% BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year <CZ2YT=R 1.5300 0.0550 +215bps +5bps R> 5-year <CZ5YT=R 1.8270 -0.0020 +197bps -1bps R> 10-year <CZ10YT= 2.1220 0.0040 +167bps +0bps RR> Poland 2-year <PL2YT=R 1.5830 0.0360 +220bps +3bps R> 5-year <PL5YT=R 2.4910 0.0260 +263bps +2bps R> 10-year <PL10YT= 3.2350 0.0090 +278bps +0bps RR> FORWARD RATE AGREEMEN T 3x6 6x9 9x12 3M interban k Czech Rep 2.11 2.20 2.46 1.97 <PRIBOR= > Hungary 0.39 0.67 1.04 0.16 Poland 1.77 1.83 1.92 1.72 Note: FRA are for ask prices quotes ************************************************* ************* (Reporting by Sandor Peto; Editing by Toby Chopra)

CEE MARKETS-CEE currencies gain, shielded by euro

02 Nov 2018

By Radu-Sorin Marinas BUCHAREST, Nov 2 Central European currencies recovered on Friday after a one-day Nov. 1 market break, with expectations the euro would in coming months lending them some support. The euro is expected to strengthen and eventually to rise over 2 percent to $1.16 in three months, according to a Reuters poll. However, 80 percent of the strategists polled said risks to predictions were skewed to the downside. Central and eastern European economies are deeply integrated with the euro zone. By 1050 GMT, the Polish Zloty, the Romanian leu and the Czech crown had all risen by 0.1 percent. Hungary remained closed on Friday for a public holiday. Ceska Sporitelna/Erste analysts said the Czech central bank still believes the crown's wandering around unusually weak levels will end within a couple of months. The Czech economy is robust, but recent rate hikes have failed to boost the currency. Market sentiment has turned gloomy for currencies in emerging markets, for a host of reasons. Czech bond yields edged up after the central bank said it was cutting its forecast for the 2018 state fiscal surplus to 1.5 percent of gross domestic product from an earlier estimate of 1.6 percent. CEE SNAPSHOT AT 1200 MARKETS CET CURRENCIE S Latest Previous Daily Change bid close change in 2018 Czech 25.8100 25.8330 +0.09% -1.04% crown Hungary 321.9300 322.6000 +0.18% -3.42% forint Polish 4.3240 4.3280 +0.09% -3.41% zloty Romania 4.6621 4.6630 +0.02% +0.38% n leu Croatia 7.4350 7.4345 -0.01% -0.06% n kuna Serbian 118.2100 118.2000 -0.01% +0.25% dinar Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2018 Prague 1069.36 1070.5900 -0.11% -0.82% Budapes 37155.21 37155.21 +0.00% -5.64% t Warsaw 2192.82 2151.88 +1.90% -10.90% Buchare 8544.43 8560.18 -0.18% +10.20% st Ljublja 813.55 794.89 +2.35% +0.89% na Zagreb 1776.87 1779.13 -0.13% -3.58% Belgrad 739.85 740.42 -0.08% -2.63% e Sofia 595.87 596.58 -0.12% -12.04% BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republi c 1.5920 0.0400 +223bp +2bps 2-year s 1.8530 0.0050 +202bp -2bps 5-year s <CZ10YT=RR 2.1510 0.0340 +172bp +0bps 10-year > s Poland 1.5930 0.0370 +223bp +2bps 2-year s 2.4670 -0.0050 +263bp -3bps 5-year s <PL10YT=RR 3.2030 -0.0040 +278bp -4bps 10-year > s FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M interbank Czech <P 2.05 2.20 2.35 1.82 Rep RIBOR=> Hungary <B 0.32 0.61 0.96 0.16 UBOR=> Poland <W 1.76 1.82 1.88 1.72 IBOR=> Note: are for ask prices FRA quotes *************************************************** *********** (Editing by Larry King)

CEE MARKETS-Zloty softens, FX watches Italy-EU budget battle

23 Oct 2018

* All eyes on Italy's budget talks with EU * Poland may issue final results of regional polls * Zloty tracks euro falls on Italy woes By Radu-Sorin Marinas BUCHAREST, Oct 23 Poland's zloty eased while other Central European currencies were virtually unchanged in cautious trade on Tuesday due to uncertainties over Italy's budget plans that are to be discussed by the European Commission at a meeting later in the day. Central Europe is tightly integrated economically with the euro zone, and investors are keenly watching for any further market impact arising from Italy's tensions with Brussels over its expansionary spending and overly optimistic projections. The zloty fell 0.2 percent to 4.2981 against the euro by 0932 GMT, the most sensitive among its regional peers to the single currency's moves in response to Italy's budget woes. The Czech crown was flat at 25.83 and the Romanian leu traded virtually flat at 4.6680. Budapest markets were closed for a holiday. "The risk of a challenging attitude by the Italian government continuing looks elevated. Given this, expect the euro to stay on the defensive," ING Bank said in a note. The euro fell towards a two-month low earlier in the day before the talks that could see Brussels take the unprecedented step of rejecting Italy's proposed budget. Stock markets in the region also weakened, led by a 1.30 percent fall for Prague followed by Warsaw with a 1.10 percent decrease. In Poland, final results of Sunday's nationwide ballot for city hall chiefs and provincial assemblies may be published on Tuesday at the earliest. Exit polls showed the eurosceptic Law and Justice (PiS) made only limited gains and lost a high-profile contest for Warsaw mayor. "Warsaw's) ongoing stand-off with the European Commission should prevent the euro/zloty from breaching the 4.20 level until the second quarter of 2019," ING said. CEE SNAPSHOT AT MARKETS 1207 CET CURRENCIE S Latest Previo Daily Change us bid close change in 2018 Czech 25.8300 25.830 +0.00% -1.11% crown 0 Hungary 322.8300 322.79 -0.01% -3.69% forint 00 Polish 4.2981 4.2900 -0.19% -2.83% zloty Romanian 4.6680 4.6665 -0.03% +0.25% leu Croatian 7.4310 7.4320 +0.01% -0.01% kuna Serbian 118.3700 118.45 +0.07% +0.11% dinar 00 Note: calculated from 1800 daily CET change Latest Previo Daily Change us close change in 2018 Prague 1067.22 1081.1 -1.29% -1.01% 800 Budapest 37185.93 37185. +0.00% -5.57% 93 Warsaw 2170.32 2193.0 -1.04% -11.82% 8 Bucharest 8607.57 8615.9 -0.10% +11.01% 5 Ljubljana 813.54 812.66 +0.11% +0.89% Zagreb 1782.67 1787.1 -0.25% -3.27% 6 Belgrade 734.81 739.45 -0.63% -3.29% Sofia 597.30 606.95 -1.59% -11.83% BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year 1.5940 0.1020 +223bp +11bps s 5-year 1.8570 -0.004 +201bp +1bps 0 s 10-year <CZ10YT=RR 2.1670 0.0000 +173bp +2bps > s Poland 2-year 1.5550 -0.032 +219bp -3bps 0 s 5-year 2.5090 -0.016 +266bp +0bps 0 s 10-year <PL10YT=RR 3.2280 -0.026 +280bp -1bps > 0 s FORWARD RATE AGREEM ENT 3x6 6x9 9x12 3M interbank Czech Rep <P 2.06 2.24 2.39 1.77 RIBOR=> Hungary <B 0.42 0.72 1.08 0.16 UBOR=> Poland <W 1.76 1.82 1.88 1.72 IBOR=> Note: FRA are for ask prices quotes ************************************************** ************ (Reporting by Radu Marinas; Editing by Kirsten Donovan)

Romanian president reluctantly signs legal reform in "setback for democracy"

12 Oct 2018

BUCHAREST Romania's president on Friday reluctantly signed off a judicial reform, including a reduction in his own powers, that he called a "setback for Romanian democracy".

Romania's government okays pension overhaul, doubles budget

10 Oct 2018

BUCHAREST Romania's government has approved a plan to more than double state pensions over the next four years for the country's 5.2 million retirees, a move that critics say will put heavy strain on public finances in the long run.

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