* Currencies mixed, shrug off local data, eye stocks
* Crown gets support as President vetoes scrap subsidies
* Poland's bond tenders, CPI release in focus for next week
(Adds bonds, crown, updates markets)
By Marton Dunai
BUDAPEST, July 10 (Reuters) - Emerging European currencies
lacked a clear lead on Friday, awaiting signals from global
stock markets, and looking to a potentially busy week ahead with
bond auctions and important data releases, dealers said.
At 0923 GMT, The Czech crown <EURCZK=> had gained about a
third of a percent against the euro, while other currencies
eased: the forint <EURHUF=> by 0.25 percent, the zloty <EURPLN=>
0.1 percent. The leu <EURRON=> was flat.
Bank CSOB said the crown may have gotten some support after
President Vaclav Klaus vetoed a law on scrap subsidies. It said
the market had seen the plan as negative because more stimulus
spending could further undermine an already strained budget.
Global sentiment was also key, CSOB said.
Dealers said they expected tight trading ranges, with the
forint seen between 275 and 280 to the euro, and the zloty
<EURPLN=> in the 4.35-4.39 range.
"It seems that everything will depend on the stock exchanges
today," said a Warsaw-based FX trader. "If stocks go down, we
may see some (zloty) weakening but I doubt whether the zloty
could weaken beyond 4.40 against the euro."
Stock falls traditionally suggest less risk appetite among
investors and usually put pressure on emerging market
currencies.
A Czech dealer said they would be watching the U.S. market
open for signs of sentiment and support for the crown should be
around 25.88. If sentiment in the region continued to wane, it
would stay above 26 per euro, the dealer said.
In Romania, annual inflation slowed to 5.9 percent in June,
a touch above expectations, but markets were unmoved and the leu
was flat. []
"With economic activity continuing to decline there is not
much inflationary pressure and this could keep the door open for
further moderate monetary easing -- at least as long as the leu
remains relatively stable," said Danske Bank analyst Lars
Christensen.
AUCTIONS EYED NEXT WEEK
Polish bonds gave back earlier gains on Friday ahead of next
week's bond tender, which dealers said could set market
sentiment anew. Poland will offer 1.0-2.0 billion zlotys in
bonds maturing in 2014 at a tender.
"Investors are (...) selling bonds now and hope Wednesday
tender would be good buying opportunity," said Pawel
Bialczynski, a fixed income trader at BRE Bank in Warsaw.
"The sentiment for Polish bonds is good and risk worries
concerning Poland have recently abated... but there is a
question how sustainable it is," he said.
Hungary will also sell bonds next week, and the state debt
management agency AKK more than doubled the amount to be
auctioned off to 55 billion forints from 24 billion forints at
the previous tender.
A dealer on Friday said he expected to sale to be a success,
as demand has been consistently strong in recent days.
----------------------MARKET SNAPSHOT-------------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2009
Czech crown <EURCZK=> 25.957 26.039 +0.32% +3.07%
Polish zloty <EURPLN=> 4.372 4.367 -0.11% -5.88%
Hungarian forint <EURHUF=> 276.59 275.91 -0.25% -4.71%
Croatian kuna <EURHRK=> 7.326 7.343 +0.23% +0.53%
Romanian leu <EURRON=> 4.212 4.211 -0.02% -4.69%
Serbian dinar <EURRSD=> 92.887 2.845 -0.05% -3.67%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond CZ2YT=RR +1 basis points to 162bps over bmk*
4-yr T-bond CZ4YT=RR -8 basis points to +168bps over bmk*
8-yr T-bond CZ8YT=RR +7 basis points to +309bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR -3 basis points to +404bps over bmk*
5-yr T-bond PL5YT=RR -1 basis points to +320bps over bmk*
10-yr T-bond PL10YT=RR -2 basis points to +294bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR -20 basis points to +752bps over bmk*
5-yr T-bond HU5YT=RR -59 basis points to +672bps over bmk*
10-yr T-bond HU10YT=RR -48 basis points to +571bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1123 CET.
Currency percent change calculated from the daily domestic
close at 1500 GMT.
(Reporting by Marton Dunai, editing by Toby Chopra)
