CEE MARKETS-Hungary's forint leads gains as markets await stimulus measures

    By Anita Komuves
    BUDAPEST, April 6 (Reuters) - Central European stock indexes
and currencies firmed on Monday, with the Hungarian forint
leading gains, as a slowdown in the growth of the coronavirus
over the weekend lifted the mood in major markets around the
world. 
    The forint gained more than 1% and was trading at
363.65 versus the euro, while Budapest's stock index was
up 1.8%, as Prime Minister Viktor Orban was set to announce
details of a $30 billion economic stimulus package.
    "Investors seem to be waiting for a miracle, and that
strengthens the forint," an FX trader in Budapest said.
"However, we do not yet know if these measures will have the
desired long-term effect and help the economy."
    A few details of the measures, amounting to between 18% and
22% of Hungary's GDP, were announced by Orban's chief of staff
on Saturday. 
    Gergely Gulyas said the government had created a $2 billion
special fund to aid the fight against the novel coronavirus,
which will include contributions from banks and foreign
retailers.
    Domestic banks will be expected to pay 55 billion forints
($163 million) into the fund this year, with multinational
retailers adding 36 billion.
    The forint plunged last week to record lows near 370 to the
euro on a number of factors including a government move to
secure open-ended emergency powers to fight the coronavirus. 
    It regained some strength after the central bank on
Wednesday announced a new one-week deposit tender available to
banks at its 0.9% base rate, which some analysts called an
implicit rate hike.
    Elsewhere, the Polish zloty was up 0.35% at 4.563
versus the euro, while the Romanian leu was stable.
    Stock indexes were up across the region. Warsaw outperformed
with a near 3% advance.
    The Czech crown gained 0.51% and equities
were up 1.7% as the country reported a slower daily percentage
rise in confirmed coronavirus cases. 
    Czech bond yields have stabilised, with dealers saying
demand is still strong for the country's paper on secondary
markets, boosted by risk-on sentiment in markets. 
    The Finance Ministry has sold a large amount of bonds and
treasury bills in primary auctions in the past few weeks and has
also been selling some in the secondary market. 
    The Polish Finance Ministry will offer T-bills worth between
2.0 and 4.0 billion zlotys at tender on Monday.
    
            CEE        SNAPSHOT    AT                         
            MARKETS               1010 CET            
                       CURRENCIE                              
                       S                              
                       Latest     Previous  Daily     Change
                       bid        close     change    in 2020
 Czech                   27.6600   27.8000    +0.51%    -8.05%
 crown                                                
 Hungary                363.6500  367.8000    +1.14%    -8.94%
 forint                                               
 Polish                   4.5630    4.5790    +0.35%    -6.72%
 zloty                                                
 Romanian                 4.8295    4.8310    +0.03%    -0.85%
 leu                                                  
 Croatian                 7.6266    7.6305    +0.05%    -2.38%
 kuna                                                 
 Serbian                117.5200  117.5200    +0.00%    +0.04%
 dinar                                                
 Note:      calculated from                 1800 CET          
 daily                                                
 change                                               
                                                              
                       Latest     Previous  Daily     Change
                                  close     change    in 2020
 Prague                   787.44  774.3400    +1.69%   -29.42%
 Budapest               32833.13  32265.92    +1.76%   -28.75%
 Warsaw                  1550.33   1506.48    +2.91%   -27.89%
 Bucharest               7663.22   7525.60    +1.83%   -23.19%
 Ljubljana                737.25    716.62    +2.88%   -20.37%
 Zagreb                  1557.70   1504.98    +3.50%   -22.79%
 Belgrade   <.BELEX15     648.31    645.32    +0.46%   -19.13%
            >                                         
 Sofia                    428.34    423.34    +1.18%   -24.61%
                                                              
                       Yield      Yield     Spread    Daily
                       (bid)      change    vs Bund   change
                                                      in
 Czech                                                spread
 Republic                                             
   2-year   <CZ2YT=RR     1.0180    0.0540   +167bps     +5bps
            >                                         
   5-year   <CZ5YT=RR     1.1380   -0.0590   +174bps     -7bps
            >                                         
   10-year  <CZ10YT=R     1.4910    0.0770   +191bps     +6bps
            R>                                        
 Poland                                                       
   2-year   <PL2YT=RR     0.9850   -0.0940   +164bps    -10bps
            >                                         
   5-year   <PL5YT=RR     1.3440    0.0520   +194bps     +4bps
            >                                         
   10-year  <PL10YT=R     1.7010    0.0000   +212bps     -2bps
            R>                                        
            FORWARD                                           
                       3x6        6x9       9x12      3M
                                                      interban
                                                      k
 Czech Rep          <       0.35      0.37      0.43      1.01
            PRIBOR=>                                  
 Hungary            <       1.09      1.02      1.12      0.92
            BUBOR=>                                   
 Poland             <       0.54      0.42      0.38      1.17
            WIBOR=>                                   
 Note: FRA  are for ask prices                                
 quotes                                               
 ***************************************************          
 ***********                                          
 

 (Additional reporting by Jason Hovet in Prague and Alan
Charlish in Warsaw
Editing by David Holmes
)
  
 
 

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