CEE MARKETS-Hungary's forint, bond yields stable after cenbank leaves rates unchanged
By Anita Komuves
BUDAPEST, Nov 22 (Reuters) -
The forint was little moved on Tuesday and bond yields were
stable after the National Bank of Hungary (NBH) left its base
rate unchanged, as expected, while markets eyed a press briefing
scheduled for 1400 GMT.
The forint was down 0.22% on the day and
trading at 408.60 per euro, a touch weaker than it was right
after the rate announcement.
The NBH left its base rate unchanged at 13%, with
inflation on track to scale a 26-year high in 2023 and exceeding
the bank's 2% to 4% policy target range even a year later.
Long-term bond yields were not immediately moved after
the central bank's announcement, a fixed-income trader said. The
yield on the benchmark 10-year bond was about 7.90%.
Market participants were eyeing the central bank's press
conference at 1400 GMT for comments on the decision and on the
government's announcement that rates on large commercial bank
deposits will be capped, traders said.
"We expect the central bank to say something on the
interest rate cap as some investors still struggle to see what
is in the background of this decision," an FX trader in Budapest
said.
The government
announced on Monday that commercial banks cannot pay an
interest rate higher than the three-month discount bill yield on
deposits by certain large institutional and private investors.
The National Bank of Hungary announced an emergency rate
hike last month and introduced a quick deposit facility with an
18% interest rate.
The yield on the three-month discount bill was about 11% on
Tuesday.
Long-term government bond yields dropped about 25 basis
points on Monday after the cap was announced, and were stable on
Tuesday, fixed-income traders said.
Elsewhere, the Polish zloty weakened 0.35% to
4.7130 per euro.
CEE SNAPSH AT
MARKETS OT 1435
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 00 %
Note: calcula 1800
daily ted CET
change from
Latest Previo Daily Change
us
close change in 2022
.PX Prague 1238.3 1242.7 -0.36% #VALUE!
0 200
.BUX Budapes 45325. 44592. +1.64 -10.64%
t 89 90 %
.WIG20 Warsaw 5 0 %
.BETI Buchare 11578. 11690. -0.96% -11.35%
st 23 03
.SBITO Ljublja 2 0
.CRBEX Zagreb 2 6 %
.BELEX Belgrad %
.SOFIX Sofia %
Yield Yield Spread Daily
(bid) change vs change
Bund in
Czech spread
Republi
c
CZ2YT= ps
CZ5YT= 0 ps
CZ10YT 0 ps
Poland
PL2YT= 0 ps
PL5YT= 0 ps
PL10YT 0 ps
FORWARD
3x6 6x9 9x12 3M
interba
nk
Czech Hungary Poland Note: are for
FRA ask
quotes prices
********************************
******************************
(Additional reporting by Alan Charlish in Warsaw and Jason
Hovet in Prague; Editing by Shounak Dasgupta and Maju Samuel)
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