CEE MARKETS-Polish zloty weakens on concerns of rising coronavirus infections

    By Alan Charlish
    WARSAW, Aug 21 (Reuters) - The Polish zloty slipped on
Friday, as a fresh record number of daily coronavirus cases
added to worries about the toll the pandemic is taking on the
global economy.
    Poland reported 903 new daily cases of the coronavirus on
Friday, a record that came just two days after the U.S. Federal
Reserve spooked global markets with minutes that showed doubts
about the U.S. economic recovery.
    "The overall sentiment right now is not so optimistic due to
the evolution of the pandemic in Europe," said Mateusz Sutowicz,
a financial market analyst at Bank Millennium.
    At 0940 GMT, the Polish zloty was 0.16% weaker
against the euro at 4.3913. The Hungarian forint
dipped 0.24% to 349.88 in thin trade, as the local market was
closed for a holiday. 
    The Czech crown and Romanian leu were
broadly flat at 26.05 and 4.84, respectively.
    Benchmark Polish 10-year yields fell almost 3
basis points to 1.324%
    On Thursday, Poland's government accepted an amended 2020
budget with a deficit of 109.3 billion zlotys. Before the
pandemic struck it had been planning to have the first balanced
budget in three decades in 2020.
    "Recently, the ministry of finance has not carried out
regular bond auctions due to the record amount of funds
accumulated in budgetary accounts, but the increase in borrowing
needs may cause them to appear in the calendar in the coming
months...," PKO BP analysts said in a note.
    "Such an arrangement should support the maintenance of
10-year bonds close to 1.35% in the coming weeks."
    Czech 10-year yields fell just over 2 basis
points to 0.987%.
    Stocks were higher, in line with other European markets
which had shrugged off negative French, German and euro zone PMI
    In Prague, the PX index was up 0.98% and Warsaw's WIG
20 index gained 0.46%.
           CEE       SNAPSHO   AT                      
           MARKETS   T        1140              
                     Latest   Previou  Daily    Change
                     bid      close    change   in 2020
 Czech     <EURCZK=  26.0500  26.0500   +0.00%   -2.37%
 crown     >                                    
 Hungary   <EURHUF=  349.880  349.050   -0.24%   -5.35%
 forint    >               0        0           
 Polish    <EURPLN=   4.3913   4.3844   -0.16%   -3.07%
 zloty     >                                    
 Romanian  <EURRON=   4.8400   4.8395   -0.01%   -1.07%
 leu       >                                    
 Croatian  <EURHRK=   7.5230   7.5270   +0.05%   -1.03%
 kuna      >                                    
 Serbian   <EURRSD=  117.500  117.600   +0.09%   +0.06%
 dinar     >               0        0           
 Note:     calculated from             1800            
 daily                                 CET      
                     Latest   Previou  Daily    Change
                              close    change   in 2020
 Prague               897.68  889.010   +0.98%  -19.54%
 Budapest            36043.5  36043.5   +0.00%  -21.79%
                           6        6           
 Warsaw              1823.42  1815.03   +0.46%  -15.19%
 Buchares            8690.73  8702.02   -0.13%  -12.89%
 Ljubljan  <.SBITOP   863.36   861.98   +0.16%   -6.75%
 a         >                                    
 Zagreb              1597.26  1595.94   +0.08%  -20.83%
 Belgrade  <.BELEX1   673.04   680.10   -1.04%  -16.05%
 Sofia                436.71   435.81   +0.21%  -23.13%
                     Yield    Yield    Spread   Daily
                     (bid)    change   vs Bund  change
 Czech                                          spread
   2-year  <CZ2YT=R   0.1330   0.0080   +082bp    +2bps
           R>                                s  
   5-year  <CZ5YT=R   0.6400  -0.0640   +135bp    -5bps
           R>                                s  
           <CZ10YT=   0.9870  -0.0220   +150bp    -1bps
 10-year   RR>                               s  
   2-year  <PL2YT=R   0.1560  -0.0080   +084bp    +0bps
           R>                                s  
   5-year  <PL5YT=R   0.7210  -0.0370   +143bp    -2bps
           R>                                s  
           <PL10YT=   1.3240  -0.0270   +183bp    -1bps
 10-year   RR>                               s  
                     3x6      6x9      9x12     3M
 Czech                  0.33     0.33     0.41     0.34
 Rep       <PRIBOR=                             
 Hungary                0.78     0.83     0.88     0.61
 Poland                 0.22     0.23     0.24     0.23
 Note:     are for ask                                 
 FRA       prices                               
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 (Reporting by Alan Charlish in Warsaw, Robert Muller in Prague,
Radu-Sorin Marinas and Luiza Ilie in Bucharest; Editing by Amy
Caren Daniel)

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