CEE MARKETS-Crown at fresh low as FX fades, Romania debt market tested
WARSAW, Oct 1 (Reuters) - Emerging Europe's currencies fell on Thursday, with the Czech crown at a five-month low, as rising US yields and a stronger dollar cut into investor appetite, while the region's debt auctions were watched, including in Romania, where a political crisis persists.
The global backdrop has been a main driver for central Europe's assets in recent trading, with the region's main reference currency, the euro, at its lowest in 17 months and US Treasury yields showing their biggest quarterly rise since 1994.
Romania's finance ministry was scheduled to hold a debt auction on Thursday, as was Hungary's debt management agency.
"There is a global selloff in the bond market ... and it, obviously, affects our region as well ... What is new is that markets did not react to oil prices ... falling below 100 dollars," a Budapest-based bond trader said. "I expect today's auction to go okay ... The Hungarian story is still buoying the market."
"I expect today's auction to go okay... The Hungarian story is still buoying the market," the trader added.
Hungary's 10-year benchmark bond yield was up 6 basis points today to 5.85%, the trader said, while the forint led losses against the euro, shedding 0.4% to 367.95 by 0907 GMT.
While the zloty and the crown have fallen over the past month, the forint has been buoyed by the pro-European stance of Hungarian Prime Minister Peter Magyar, who took power in May and put euro adoption back on the agenda.
The zloty was down 0.3% at 4.3770 per euro while the crown eased 0.1% against the common currency to 24.4640.
In Romania, Prime Minister-designate Siegfried Muresan failed to win a parliamentary vote of confidence on Wednesday, extending an impasse. President Nicusor Dan said on Wednesday that he will nominate a new prime minister by next Monday.
Analysts see possible pressure on the country's investment grade rating as Romania still tackles one of the EU's biggest budget deficits.
"Despite no clear path to a new government, markets remain stable ... The key test, however, will be (rating agency) S&P's sovereign rating review on Friday," ING wrote in a note.
CEE MARKETS SNAPSHOT AT 1107 CET | |||||
CURRENCIES | Latest trade | Previous close | Daily change | Change in 2025 | |
Czech crown | 24.4640 | 24.4320 | -0.13% | -1.22% | |
Hungary forint | 367.9500 | 366.3500 | -0.43% | +4.46% | |
Polish zloty | 4.3770 | 4.3635 | -0.31% | -3.69% | |
Romanian leu | 5.2748 | 5.2705 | -0.08% | -3.43% | |
Serbian dinar | 117.3800 | 117.5500 | +0.14% | -0.07% | |
Note: daily change calculated from 1800 CET | |||||
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STOCKS | Latest | Previous close | Daily change | Change in 2025 | |
Prague | .PX | 2639.25 | 2675.2500 | -1.35% | -1.73% |
Budapest | .BUX | 143404.50 | 145181.93 | -1.22% | +29.16% |
Warsaw | .WIG20 | 4124.33 | 4181.83 | -1.37% | +29.53% |
Bucharest | .BETI | 31674.63 | 31093.91 | +1.87% | +29.61% |
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BONDS | Yield (bid) | Yield change | Spread vs Bund | Daily change in spread | |
Czech Rep 2-year | 4.3367 | 0.0777 | +115bps | +8bps | |
Czech Rep 5-year | 4.7027 | 0.0626 | +135bps | +5bps | |
Czech Rep 10-year | 5.3908 | 0.0643 | +179bps | +4bps | |
Poland 2-year | 4.9200 | 0.0400 | +173bps | +4bps | |
Poland 5-year | 6.0350 | -0.0200 | +269bps | -4bps | |
Poland 10-year | 6.3780 | 0.0150 | +278bps | -1bps | |
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FORWARD RATE AGREEMENTS | 3x6 | 6x9 | 9x12 | 3M interbank | |
Czech Rep | , | 4.33 | 4.65 | 4.86 | 3.87 |
Poland | , | 4.33 | 4.82 | 4.99 | 3.85 |
Note: FRA quotes are for ask prices | |||||