UPDATE 1-CEE MARKETS-Forint pares losses after surprise cbank tightening

 (Updates prices)
    By Anita Komuves
    BUDAPEST, April 1 (Reuters) - Hungary's forint
rallied about 1% from record lows near 370 versus the euro on
Wednesday after the central bank announced a new one-week
deposit tender available to banks at its 0.9% base rate.

    Central Europe's worst performing currency in 2020 was still
down 1% on the day at 365 versus the euro at 1404 GMT, but the
bank's surprise announcement, representing a tightening of
monetary policy, helped provide a floor.
    The region's stock markets and currencies weakened on
Wednesday, with the Hungarian forint tumbling to a record low
versus the euro as PMI data across the region fuelled worries of
a deep recession caused by the coronavirus pandemic. 
    The forint plunged to new record lows past 369 versus the
euro earlier in the session and underperformed the region's
other currencies.
    Market players said the underperformance was due to a
combination of several factors, including dismal PMI data and
the Hungarian government's move to secure open-ended special
rights to fight the coronavirus that triggered a fresh wave of
worries over democracy. 
    The Hungarian currency has lost more than 9% of its value to
the euro this year.
    Hungary's seasonally adjusted PMI fell to 29.1 in March from
a revised 50.3 in February.
    A Budapest dealer said that one or two banks were heavily
trying to buy foreign currency on Tuesday, dollars and euros.   
  
    "The forint has been weakening since Parliament gave the
government the right to rule by decree on Monday," another
Budapest-based dealer said.  
    Elsewhere, the Polish zloty was down 0.62% to
trade at 4.5783 to the euro, while the Czech crown
eased 0.26% to 27.390 against the euro. The Romanian leu
 was steady, trading at 4.833.
    The Czech Finance Ministry sold a record 87.4 billion crowns
($3.50 billion) of three bonds at auctions on Wednesday,
following up on massive debt sales last week as it accelerates
borrowing to combat the coronavirus outbreak.
    The Czech National Bank (CNB) cut interest rates by 125
basis points to 1.00% in two steps over 10 days in March and
markets are betting on further cuts to come, which is spurring
bond demand.
    Manufacturing activity in Poland, the region's largest
economy, declined in March at the fastest rate since the 2008
global financial crisis. The IHS Markit PMI fell to 42.4 from
48.2 in February.
    Czech manufacturing business sentiment also plunged, to the
lowest since May 2009.      
                   CEE      SNAPSHO   AT                      
                   MARKETS  T        1604              
                                     CET               
                            CURRENC                           
                            IES                        
                            Latest   Previou  Daily    Change
                                     s                 
                            bid      close    change   in 2020
 EURCZK  Czech     <EURCZK  27.3800  27.3200   -0.22%   -7.11%
 =       crown     =>                                  
 EURHUF  Hungary   <EURHUF  365.000  360.800   -1.15%   -9.28%
 =       forint    =>             0        0           
 EURPLN  Polish    <EURPLN   4.5865   4.5500   -0.80%   -7.20%
 =       zloty     =>                                  
 EURRON  Romanian  <EURRON   4.8327   4.8335   +0.02%   -0.92%
 =       leu       =>                                  
 EURHRK  Croatian  <EURHRK   7.6260   7.6301   +0.05%   -2.37%
 =       kuna      =>                                  
 EURRSD  Serbian   <EURRSD  117.460  117.530   +0.06%   +0.09%
 =       dinar     =>             0        0           
         Note:     calculated from            1800            
         daily                                CET      
         change                                        
                                                              
                            Latest   Previou  Daily    Change
                                     s                 
                                     close    change   in 2020
 .PX     Prague              771.25  789.880   -2.36%  -30.87%
                                           0           
 .BUX    Budapest           32473.5  33134.8   -2.00%  -29.53%
                                  0        7           
 .WIG20  Warsaw    <.WIG20  1475.73  1512.84   -2.45%  -31.36%
                   >                                   
 .BETI   Buchares           7432.81  7625.38   -2.53%  -25.50%
         t                                             
 .SBITO  Ljubljan  <.SBITO   727.00   733.34   -0.86%  -21.48%
 P       a         P>                                  
 .CRBEX  Zagreb    <.CRBEX  1471.92  1480.51   -0.58%  -27.04%
                   >                                   
 .BELEX  Belgrade  <.BELEX   658.97   636.53   +3.53%  -17.80%
 15                15>                                 
 .SOFIX  Sofia     <.SOFIX   417.00   419.35   -0.56%  -26.60%
                   >                                   
                                                              
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
                                                       in
         Czech                                         spread
         Republic                                      
 CZ2YT=    2-year  <CZ2YT=   0.8730   0.0730   +154bp    +4bps
 RR                RR>                              s  
 CZ5YT=    5-year  <CZ5YT=   1.2790  -0.0210   +190bp    -5bps
 RR                RR>                              s  
 CZ10YT            <CZ10YT   1.5250   0.0140   +199bp    +2bps
 =RR     10-year   =RR>                             s  
         Poland                                               
 PL2YT=    2-year  <PL2YT=   1.0070   0.0850   +167bp    +5bps
 RR                RR>                              s  
 PL5YT=    5-year  <PL5YT=   1.3390   0.0440   +196bp    +2bps
 RR                RR>                              s  
 PL10YT            <PL10YT   1.7030   0.0180   +217bp    +3bps
 =RR     10-year   =RR>                             s  
                   FORWARD                                    
                            3x6      6x9      9x12     3M
                                                       interba
                                                       nk
         Czech     <CZKFRA     0.47     0.45     0.48     1.04
         Rep       ><PRIBO                             
                   R=>                                 
         Hungary   <HUFFRA     0.79     0.83     0.75     0.47
                   ><BUBOR                             
                   =>                                  
         Poland    <PLNFRA     0.62     0.52     0.47     1.17
                   ><WIBOR                             
                   =>                                  
         Note:     are for ask                                
         FRA       prices                              
         quotes                                        
 
 (Additional reporting by Jan Lopatka in Prague; Editing by Jan
Harvey and Elaine Hardcastle)
  
 
 

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