Slovak crown loses ground on region, repo tender

    The Slovak crown eased 0.5 
percent against the euro on Tuesday due to capital outflows from 
central European markets and the outcome of the central bank's 
(NBS) liquidity-draining tender, dealers said. 
    The crown traded at 34.835 per euro  as of 1605 
GMT, compared with Monday's two-week high of 34.400 and a close 
of 34.660. 
    "The crown weakened on the region and also on the repo 
tender result," said HVB bank dealer Marian Sulko. "If the 
34.850 per euro level holds the unit might move toward stronger 
levels, but it's not likely." 
    Short-term deposit rates fell after the NBS left the money 
market swimming in excess funds for the fourth week in a row on 
Tuesday to dent crown strength. 
    The NBS' weekly repo auction drained 100.0 billion crowns 
from the money market, out of total bids of 202.556 billion. 
    The two-week deposit rate stood at a nine-month low of 
3.35/3.65 percent  as of 1600 GMT. 
    The crown, the best performing currency in central Europe 
last year, trades 9.4 percent above the central parity within 
the Exchange Rate Mechanism 2 (ERM-2), which Slovakia joined in 
November 2005. 
----------------- MARKET SNAPSHOT AT 1605 GMT ----------------- 
 Crown/euro  34.835 vs 34.660 on Monday (-0.50 pct) 
 Crown/dollar   26.714 vs 26.639 (-0.28) 
5-yr govt bond  yield 4.351/4.110 vs 4.350/4.150 pct 
7-yr govt bond  yield 4.398/4.159 vs 4.400/4.200 pct 
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[BRATISLAVA/Reuters/Finance.cz]