CEE MARKETS-Forint extends gains with talks over EU funds in focus

       By Anita Komuves
       BUDAPEST, Nov 23 (Reuters) - The Hungarian forint firmed
on Wednesday, adding to gains from the previous session as it
was supported by high central bank interest rates and investor
hopes for a deal on European Union funds.
    The forint traded 0.22% stronger on the day at 406
per euro after the central bank left its base rate at 13% on
Tuesday and pledged to maintain tight monetary conditions for a
"prolonged period".
    The currency was helped by growing optimism over a deal
between Hungary and the EU over funds, and by the central bank's
quick deposit tender offered at an 18% interest rate, two FX
traders in Budapest said.
    "Local market participants are somewhat confused by the
government's interest rate cap on bank deposits, but that does
not apply to foreign investors, so the 18% rate is still
supporting the forint," one of the traders said.
    The central bank announced an emergency rate hike last month
and introduced the quick deposit facility, which helped shore up
the forint.
    On Monday, however, the government capped deposit rates for
certain large institutional and private investors at the
three-month Treasury bill yield until March, which some analysts
said would harm the efficiency of monetary transmission.
    Long-term government bond yields were stable on Wednesday, a
fixed-income trader said. The yield on the benchmark 10-year
bond was about 7.90%.
    The Czech crown edged up 0.07% to 24.350 per euro
as central bank Governor Ales Michl said interest rates were at
high enough levels at the moment and were restricting economic
activity.
    Elsewhere, the Polish zloty added 0.14% to trade
at 4.7035 versus the common currency.
     "In the coming days, we expect the EUR/PLN exchange rate to
stay above 4.70, which will be driven primarily by external
factors," PKO Bank said in a note.
    Polish retail sales were up 0.7% year-on-year in October,
below analysts' expectations of a 3.2% rise.
    Stock markets in the region were mixed, with Budapest
adding 0.85%, while Warsaw was 0.74% higher.
                  CEE      SNAPSH   AT
                  MARKETS  OT      1026
                                   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            1235.4  1238.1  -0.22%
                                1     200
 .BUX    Budapes           45720.  45335.   +0.85  -9.86%
         t                     63      11       %
 .WIG20  Warsaw   2       5       %       %
 .BETI   Buchare           11583.  11559.   +0.21  -11.31
         st                    69      06       %       %
 .SBITO  Ljublja  2       0       %       %
 .CRBEX  Zagreb   6       4
 .BELEX  Belgrad  .SOFIX  Sofia    Yield   Yield   Spread  Daily
                           (bid)   change  vs      change
                                           Bund    in
         Czech                                     spread
         Republi
         c
 CZ2YT=           0      ps
 CZ5YT=           ps
 CZ10YT           ps
         Poland
 PL2YT=           ps
 PL5YT=           ps
 PL10YT           ps
                  FORWARD
                           3x6     6x9     9x12    3M
                                                   interb
                                                   ank
         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)