CORRECTED – EEC MARKETS – Steady currencies, Polish quantitative easing program in focus

 (Corrects paragraph 3 to point out that the Polish central financial institution did
not purchase authorities bonds final week, solely government-secured
bonds from Polish nationwide improvement financial institution BGK)
    By Anita Komuves
    BUDAPEST, Could 31 (Reuters) - Central European currencies
have been largely steady on Monday as commerce quantity was low with
markets in the US and Britain closed, whereas Polish
bond markets have been eyeing the central financial institution's schedule of QE
purchases for indicators of tapering.
    Polish bond yields have been unmoved as markets have been trying
ahead to the central financial institution's schedule of June bond purchases,
due later within the day.
    Final week the financial institution purchased lower than a 3rd of the bonds
that buyers supplied to promote, which some analysts understood
as an indication of a possible begin to tapering. It solely purchased
government-secured bonds from Polish nationwide improvement financial institution
BGK, and didn't purchase treasury bonds. 
    "It is going to be necessary to look at whether or not the central financial institution
will stick to 2 operations per 30 days or scale it right down to solely
one, which might point out a doubtlessly earlier finish of the
program than the year-end (our baseline)," Erste Financial institution wrote.
    The Polish and Hungarian central banks began quantitative
easing packages final yr to assist their economies climate the
financial disaster attributable to the pandemic.
    The Nationwide Financial institution of Hungary mentioned after its price assembly
final week that its bond buy programme remained a "essential"
coverage device and "the NBH will proceed to make use of the programme by
sustaining a long-lasting presence out there."
    Currencies saved hovering close to robust ranges they lately
hit on price hike expectations that have been fuelled by
higher-than-expected CPI knowledge and indicators from central banks.
    The Polish zloty edged up 0.06% to commerce at 4.4805
per euro. The Czech crown slid 0.2% to 25.510 versus
the frequent foreign money.  
    The Hungarian forint was 0.1% decrease at 348.35 to
the euro, nonetheless buying and selling close to 9-month highs.
    "Though quick positions in opposition to the forint have
drastically been reduce lately, there's little likelihood for
additional vital firming within the quick time period," CIB Financial institution wrote.
    "The additional route for the foreign money might be determined by
the June price assembly." 
    Shares have been blended, with Prague and Warsaw gaining extra
than 0.2% every whereas Budapest slid 0.15%. Bucharest
 added 0.72%.
                    CEE      SNAPSHO   AT                       
                    MARKETS  T        1039 CET           
                             Newest   Earlier  Day by day    Change
                             bid      shut     change   in 2021
 EURCZK=  Czech     <EURCZK  25.5100   25.4600   -0.20%   +2.82%
          crown     =>                                   
 EURHUF=  Hungary   <EURHUF  348.350  348.0000   -0.10%   +4.13%
          forint    =>             0                     
 EURPLN=  Polish    <EURPLN   4.4805    4.4830   +0.06%   +1.76%
          zloty     =>                                   
 EURRON=  Romanian  <EURRON   4.9195    4.9200   +0.01%   -1.11%
          leu       => Observe:     calculated from             1800            
          day by day                                 CET      
          change Newest   Earlier  Day by day    Change
                                      shut     change   in 2021
 .PX      Prague             1166.14  1163.510   +0.23%   +13.53
                                             0                 %
 .BUX     Budapest           46161.7  46233.29   -0.15%   +9.63%
 .WIG20   Warsaw    <.WIG20  2240.50   2236.31   +0.19%   +12.93
                    >                                          %
 .BETI    Buchares           11504.7  11421.04   +0.73%   +17.33
          t                        3                           %
 .SBITOP  Ljubljan  <.SBITO  1142.76   1143.10   -0.03%   +26.85
          a         P>                                         %
 .CRBEX   Zagreb    <.CRBEX  1927.60   1928.52   -0.05%   +10.83
                    >                                          %
 .BELEX1  Belgrade  <.BELEX   769.01    778.88   -1.27%   +2.73%
 5                  15>                                  
 .SOFIX   Sofia     <.SOFIX   528.85    528.59   +0.05%   +18.17
                    >                                          %
                             Yield    Yield     Unfold   Day by day
                             (bid)    change    vs Bund  change
          Czech                                          unfold
 CZ2YT=R    2-year  <CZ2YT=   0.5250   -0.0390   +118bp    -4bps
 R                  RR>                               s  
 CZ5YT=R    5-year  <CZ5YT=   1.4790   -0.0380   +203bp    -5bps
 R                  RR>                               s  
 CZ10YT=            <CZ10YT   1.7370   -0.0170   +190bp    -4bps
 RR       10-year   =RR>                              s  
 PL2YT=R    2-year  <PL2YT=   0.3490    0.0050   +101bp    +0bps
 R                  RR>                               s  
 PL5YT=R    5-year  <PL5YT=   1.2840   -0.0150   +183bp    -3bps
 R                  RR>                               s  
 PL10YT=            <PL10YT   1.9000    0.0070   +206bp    -2bps
 RR       10-year   =RR>                              s  
                             3x6      6x9       9x12     3M
          Czech     <CZKFRA     0.69      0.93     1.26     0.39
          Rep       ><PRIBO                              
          Hungary   <HUFFRA     1.26      1.50     1.67     0.91
          Poland    <PLNFRA     0.33      0.48     0.67     0.21
          Observe:     are for ask                                 
          FRA       costs                               

 (Extra reporting by Jason Hovet in Prague; Modifying by
Christina Fincher)

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