* FX fall with emerging markets as euro, stocks down
* Romania plans EUR 500 mln domestic T-bill sale
* Hungarian long-dated bond yields rise on auction
(Updates with new comments, Romanian auction result, plan)
By Jason Hovet and Sandor Peto
PRAGUE/BUDAPEST, Nov 19 (Reuters) - Central European assets
retreated on Thursday as capital control concerns in other
emerging markets triggered a pull-out of investors despite
Polish figures confirming steady economic recovery.
Brazil unveiled a new tax on Wednesday to curb capital
inflows [], and Russia could also consider
measures, although it has no immediate plans.[]
While analysts said capital controls in emerging European
Union (EU) members were unlikely, the gloomier global sentiment
pushed currencies, equities and bonds lower in the region,
reducing the past weeks' gains.
"The region has been benefiting from a weakening dollar and
strengthening equities, but that looks over now," a Prague-based
dealer said. "It is still risk on/risk off."
The crown <EURCZK=>, the zloty <EURPLN=> and the forint
<EURHUF=> have gained about three percent versus the euro since
the last bout of risk aversion early this month.
A Czech rate setter repeated a call on Thursday for looser
monetary conditions to stem crown strength, after a proposal for
a rate cut was outvoted earlier this month.[]
The three currencies shed 0.7 percent by 1510 GMT, although
a 1.2 percent annual fall in Poland's industrial output -- less
than analysts' 2.0 percent forecast -- underpinned expectations
for steady recovery.[]
Poland has been the only EU member which has escaped
recession. The central bank of Hungary where the economy is seen
contracting by about 6.5 percent this year<HUGDP1> is expected
to cut its base rate further on Monday.[]
"The forint can ease further towards 270," one
Budapest-based dealer said. "But even that would not prevent a
50 basis point rate cut, unless there is a bigger weakening and
an even bigger slump in equity markets."
ROMANIA PLANS DOMESTIC EURO PAPER
Hungary's fiscal plans were approved by the International
Monetary Fund early this week, while the IMF has halted talks
with neighbouring Romania which has also resorted to
international aid like Hungary.[]
The delay in the talks makes it more difficult for the
government to finance itself.
On Thursday Romania sold just 264 million lei worth of
three-year bonds at its 10 percent ceiling, and later the
finance ministry announced that it planned to sell 500 million
euros in one-year Treasury bills in the domestic market on Nov.
26.[]
The leu bucked the regional trend, trading flat against the
euro to hold a five-week high before the first round of
presidential elections on Sunday and with central bank
intervention risk hanging over the unit.
Average yields set at Hungary's government bond auctions
were lower than two weeks ago, but rose from Wednesday's
secondary market levels. Mainly five-year bonds were hit, with
yields rising 20 basis points, after low demand at the auctions.
"Interest focused on shorter bonds which indicates longer
term uncertainty," one trader said.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2009
Czech crown <EURCZK=> 25.605 25.42 -0.72% +4.48%
Polish zloty <EURPLN=> 4.132 4.101 -0.75% -0.41%
Hungarian forint <EURHUF=> 267.4 265.46 -0.73% -1.44%
Croatian kuna <EURHRK=> 7.321 7.315 -0.08% +0.6%
Romanian leu <EURRON=> 4.273 4.272 -0.02% -6.05%
Serbian dinar <EURRSD=> 94.29 94.27 -0.02% -5.1%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
3-yr T-bond CZ3YT=RR -12 basis points to 104bps over bmk*
7-yr T-bond CZ7YT=RR 0 basis points to +112bps over bmk*
10-yr T-bond CZ10YT=RR -4 basis points to +93bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR +2 basis points to +531bps over bmk*
5-yr T-bond HU5YT=RR +3 basis points to +479bps over bmk*
10-yr T-bond HU10YT=RR +2 basis points to +412bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1610 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
For related news and prices, click on the codes in brackets:
All emerging market news []
Spot FX rates
Eastern Europe spot FX <EEFX=> Middle East spot FX <MEFX=>
Asia spot FX <ASIAFX=> Latin America spot FX <LATAMFX=>
Other news and reports
World central bank news [] Economic Data Guide <ECONGUIDE>
Official rates [] Emerging Diary []
Top events [] Diaries [] Diaries Index []
(Reporting by Reuters bureaus, writing by Jason Hovet/Sandor
Peto, editing by Mike Peacock and Victoria Main)
