CEE MARKETS-Forint recoups some losses ahead of expected rate hike

       By Anita Komuves
       BUDAPEST, Sept 27 (Reuters) - The Hungarian forint
firmed on Tuesday in a positive correction, recouping some
losses from the previous session, with investors eyeing the
central bank's meeting later in the day where analysts expect
the bank to raise its base rate further.
    The forint was up 0.38%, trading at 407.00 per
euro ahead of the central bank's decision. Most analysts in a
Reuters poll expect a 100-basis-point rate hike to 12.75%.

    "The rate hike is mostly priced in already," an FX trader in
Budapest said. "Today's strengthening is a correction after the
fall yesterday when the prime minister's words on seeking funds
from non-EU sources raised investor concerns."
    The currency weakened on Monday after PM Viktor Orban said
that if the European Union does not give Hungary money for
modernising its energy system, then "we will get the necessary
funds from other financial sources."
    Orban's press chief and the government spokesman did not
reply to emailed questions from Reuters requesting details on
these financial sources.
    Long-term government bond yields continued to tick higher on
Tuesday after a jump of about 25-30 basis points in the previous
session on Orban's comments, a fixed-income trader said.
    The yield on the benchmark 10-year bond was about 9.63%, at
around a 10-year high which it had reached earlier this month.
    Investors also eyed the NBH's statement due to be published
at 1300 GMT for guidance on a possible slowdown or end of its
hiking cycle and for the bank's latest inflation projections.
    Deputy Governor Barnabas Virag told reporters last Thursday
that the NBH could consider ending its rate rise cycle after
Tuesday's meeting.
    Policymakers across central Europe are seeking to end a
cycle of rate hikes running since last year even as inflationary
pressures remain and the world's major central banks keep
pursuing higher rates.
    The Czech National Bank, meeting on Thursday, already left
rates unchanged in August for the first time in over a year.
    The Polish zloty weakened 0.31% to 4.7640 versus
the common currency. It was pressured by global recession fears
and growing risk aversion towards emerging currencies, Bank
Millennium wrote in a note.
                  CEE      SNAPSH   AT
                  MARKETS  OT      1032
                                   CET
                           CURREN
                           CIES
                           Latest  Previo  Daily   Change
                                   us
                           bid     close   change  in
                                                   2022
 EURCZK  Czech    0       0       %       %
 EURHUF  Hungary  00      00       %
 EURPLN  Polish   EURRON  Romania  %
 EURHRK  Croatia  EURRSD  Serbian  00      50       %       %
         Note:    calculated from          1800
         daily                             CET
         change

                           Latest  Previo  Daily   Change
                                   us
                                   close   change  in
                                                   2022
 .PX     Prague            1152.2  1151.0   +0.10
                                5     800       %
 .BUX    Budapes           38903.  38528.   +0.97  -23.30
         t                     43      86       %       %
 .WIG20  Warsaw   2       8       %       %
 .BETI   Buchare           10846.  10622.   +2.11  -16.95
         st                    79      15       %       %
 .SBITO  Ljublja  1       8       %       %
 .CRBEX  Zagreb   2       3
 .BELEX  Belgrad  %
 .SOFIX  Sofia    %

                           Yield   Yield   Spread  Daily
                           (bid)   change  vs      change
                                           Bund    in
         Czech                                     spread
         Republi
         c
 CZ2YT=           0      ps
 CZ5YT=           0      ps
 CZ10YT           ps       s
         Poland
 PL2YT=           0      ps
 PL5YT=           ps
 PL10YT           ps
                  FORWARD
                           3x6     6x9     9x12    3M
                                                   interb
                                                   ank
         Czech    Hungary  Poland   Note:    are for ask
         FRA      prices
         quotes
         ****************************************
         **********************
 (Additional reporting by Pawel Florkiewicz in Warsaw; editing
by Uttaresh.V)