Please use symbol entry at top right of page to search

CEE MARKETS-Hungary's forint, bond yields find support after EU funds announcement

    By Anita Komuves and Alan Charlish
       BUDAPEST/WARSAW, Nov 30 (Reuters) - The Hungarian forint
steadied on Wednesday after the European Commission approved
Hungary's post-pandemic recovery plan but said that it will hold
back any payouts until Budapest fulfils all agreed conditions.
        The EU's executive also asked European Union governments
to freeze 7.5 billion euros that Hungary would normally be
getting from the bloc's budget.

        The forint strengthened after the announcement but gave
up gains to trade down 0.1% on the day by 1226 GMT at 408.55 per
euro, off session lows.

        "The currency could strengthen significantly once EU
governments give a final nod to Hungary's recovery plan," an FX
trader in Budapest said.

        "Despite the freezing of funds, the overall message is
positive as it ends the uncertainty, and it was the uncertainty
that really weakened the forint."

        The forint is central Europe's worst-performing currency
in 2022, down 9.5%.

        On Tuesday, Hungary's minister in the negotiations,
Tibor Navracsics, said the government expected its recovery fund
plan to be approved by EU finance ministers on Dec. 12.


    Long-term government bond yields edged up after the
Commission's message, with the yield on the 10-year benchmark
bond around 8.12%, a trader said.
    "This announcement was in line with previous news reports,
and it is actually good news as it means that Hungary will get
funds sooner or later. That is why neither the forint, nor bond
yields reacted wildly," the trader said.
    Investors also eyed the central bank's two-month deposit
tender with results due later in the day. The tender is offered
at a floating rate equalling the base rate, which stands at 13%.

    The central bank also offers a quick one-day deposit
facility at 18% on a daily basis.
    In Poland, the zloty was 0.4% firmer at 4.665
after inflation for November came in at 17.4%, below forecasts.
    "I don't think this is going to have a major impact, this
would be a different thing if we had expectations of rate-hikes,
but we don't," said Piotr Poplawski, senior economist at ING in
Warsaw.
    The Czech crown was flat at 24.365.
                  CEE     SNAPSH   AT
                  MARKET  OT      1326
                  S               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              1800
         daily    from                    CET
         change

                          Latest  Previo  Daily   Change
                                  us
                                  close   change  in
                                                  2022
 .PX     Prague           1213.2  1217.7  -0.37%
                               6     500
 .BUX    Budapes          46014.  45780.   +0.51  -9.28%
         t                    23      62       %
 .WIG20  Warsaw   6       9       %       %
 .BETI   Buchare  66      66       %       %
 .SBITO  Ljublja  5       2               %
 .CRBEX  Zagreb   6       8
 .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           0      ps
         Poland
 PL2YT=           0      ps
 PL5YT=           0      ps
 PL10YT           0      ps
                  FORWAR
                  D
                          3x6     6x9     9x12    3M
                                                  interb
                                                  ank
         Czech    Hungary  Poland   Note:    are for ask
         FRA      prices
         quotes
         ***************************************
         ***********************
 
Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

Search News

Filter Results

Publication Date
Topic
Provider
  • All

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.