Hungary's forint plunges to record low, bond yields jump



(Updates with market moves, Hungarian bond yields)

By Luiza Ilie and Anita Komuves

BUCHAREST/BUDAPEST, July 5 (Reuters) - The Hungarian forint plunged to a record low on Tuesday while long-term government bond yields jumped as global fears of recession and a firming dollar added to local concerns about a high budget deficit and a row with the European Union.

The forint was down 1.78% on the day and at 1405 GMT traded at 409.50 per euro, a new historic low. The currency is central Europe's worst performer as it has shed more than 9% versus the euro so far this year.

"The global mood is sour and the forint is the most vulnerable in the region, and will stay so until issues with the EU and the budget are resolved," an FX trader in Budapest said.

The forint has recently been pressured by a high budget deficit, the lack of agreement with the European Union over pandemic recovery funds, the introduction of a windfall taxes on banks and certain companies and soaring inflation, traders and analysts have said.

Last week the National Bank of Hungary raised its base rate by 185 basis points and its one-week deposit rate by 50 basis points, bringing both key rates to 7.75%. The forint jumped after the rate hikes but soon gave up its gains.

Long-term Hungarian government bond yields rose about 35-40 basis points on Tuesday and the yield on the 10-year benchmark bond was about 8.40%, a fixed-income trader said.

"After the big rate hike the market expected a turnaround in the forint's weakening trend, and local buyers appeared and yields dropped. But with the forint nearing 410, they are trying to get rid of what they bought last week," the trader said.

Elsewhere in the region, Polish and Romanian central bankers were expected to hike their benchmark interest rates this week.

The Polish zloty EURPLN= was 0.9% weaker, while the Romanian leu EURRON= , tightly controlled by the central bank, was flat.

In Romania, policymakers were expected to hike the key rate by 75 basis point to 4.50% on Wednesday, still the lowest among its regional peers.

Polish central bankers were also expected to hike by 75 basis points on Thursday.

"The zloty remains under moderate pressure from the external environment," Bank Millennium said in a note. "A 75bp rate hike consistent with the consensus would be relatively neutral for the zloty valuation."

Stocks in the region fell, tracking global markets, with Warsaw's .WIG20 blue chip index falling 3.24%. Budapest's equities shed 1.82% while Bucharest's .BETI fell 1%.

Markets in Prague were closed for a national holiday and were due to reopen on Thursday.

CEE

SNAPSH AT

MARKETS OT

1605

CET

CURREN

CIES

Latest Previo Daily Change

us

bid

close change in

2022 EURCZK Czech

<EURCZK 24.756 24.743 -0.05% +0.47 =

crown

=>

0

0

% EURHUF Hungary <EURHUF 409.50 402.20 -1.78% -9.79% =

forint =>

00

00

EURPLN Polish <EURPLN 4.7615 4.7185 -0.90% -3.58% =

zloty

=>

EURRON Romania <EURRON 4.9445 4.9460 +0.03 +0.07 =

n leu

=>

%

% EURHRK Croatia <EURHRK 7.5250 7.5275 +0.03 -0.10% =

n kuna =>

% EURRSD Serbian <EURRSD 117.30 117.38 +0.07 +0.24 =

dinar

=>

00

00

%

%

Note:

calculated from

1800

daily

CET

change

Latest Previo Daily Change

us

close change in

2022 .PX

Prague

.PX

1212.5 1212.5 +0.00

9

900

% .BUX

Budapes .BUX

38983. 39707. -1.82% -23.14

t

78

19

% .WIG20 Warsaw <.WIG20 1638.1 1693.1 -3.24% -27.74

>

8

0

% .BETI Buchare .BETI 12244. 12368. -1.00% -6.25%

st

81

83

.SBITO Ljublja <.SBITO 1112.9 1118.2 -0.47% -11.35 P

na

P>

2

1

% .CRBEX Zagreb <.CRBEX 1998.7 2003.0 -0.21% -3.88%

>

5

1

.BELEX Belgrad <.BELEX 843.81 838.45 +0.64 +2.81 15

e

15>

%

% .SOFIX Sofia

<.SOFIX 610.36 609.24 +0.18 -3.98%

>

%

Yield Yield Spread Daily

(bid) change vs

change

Bund

in

Czech

spread

Republi

c

CZ2YT=

<CZ2YT= 6.2230 -0.006 +578b +18bp RR

2-year RR>

0

ps

s CZ5YT=

<CZ5YT= 5.3410 -0.003 +446b +17bp RR

5-year RR>

0

ps

s CZ10YT

<CZ10YT 4.5750 -0.114 +337b +3bps =RR

10-year =RR>

0

ps

Poland

PL2YT=

<PL2YT= 7.8270 -0.007 +739b +18bp RR

2-year RR>

0

ps

s PL5YT=

<PL5YT= 7.1440 0.1530 +626b +33bp RR

5-year RR>

ps

s PL10YT

<PL10YT 6.6920 0.1070 +549b +25bp =RR

10-year =RR>

ps

s

FORWARD

3x6

6x9

9x12

3M

interb

ank

Czech

<CZKFRA

7.51

7.42

6.80

7.23

Rep

><PRIBO

R=>

Hungary <HUFFRA 10.83 11.15 11.14

8.51

><BUBOR

=>

Poland <PLNFRA

8.17

8.20

8.05

7.08

><WIBOR

=>

Note:

are for ask

FRA

prices

quotes

****************************************

**********************


Reporting by Luiza Ilie in Bucharest, Anita Komuves in Budapest and Pawel Florkiewicz in Warsaw; Editing by Barbara Lewis and Alison Williams

Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.

Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.

Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.

Usamos cookies para lhe dar a melhor experiência no nosso website. Ler mais ou alterar as configurações de cookies.

Aviso de risco: O seu capital está em risco. Os produtos alavancados podem não ser adequados para todos. Recomendamos que consulte a nossa Divulgação de Riscos.