UPDATE 1-CEE MARKETS-Forint weakens, yields rise after cenbank rate hike

 (Updates with cenbank decision, FX reaction)
    By Anita Komuves
    BUDAPEST, June 22 (Reuters) - The Hungarian forint eased and
government bond yields rose after the central bank raised its
base rate by 30 basis points, slightly exceeding forecasts,
becoming the first in the European Union to tighten policy as
the economy recovers from the pandemic.
    The forint slid 0.56% to 356 to the euro by 1228 GMT,
pressured by uncertainty over the bank's next move with the
one-week deposit rate, which the National Bank of Hungary (NBH)
sets every Thursday, two currency traders in Budapest said.
    "If they raise the one-week rate to higher than the base
rate, let's say to 1%, that could support the forint," one
trader said. The one-week deposit facility is currently the main
policy tool used by the NBH.
    A Reuters poll of analysts expects the NBH to raise its
one-week deposit rate by 15 basis points to 0.9% from
0.75% by the end of this month, which would bring it in line
with the prevailing base rate.
    The bank will issue a statement and hold a press conference
at 1300 GMT. Government bond yields were up 3-4 basis points
after the central bank's decision, a fixed-income trader said. 
    "The market is still waiting for the statement and the press
conference, and for what happens to the one-week deposit rate."
    The Czech National Bank is also expected to raise its base
rate at its Wednesday meeting. A Reuters poll forecasts a 25
basis points hike.
    The Czech crown edged down 0.05% to trade at
25.530 per euro.
    Elsewhere, the Polish zloty slid 0.07% to 4.5291
per euro, while the Romanian leu edged down 0.07% to
4.9260. 
    Stocks in the region were mixed, with Budapest down
0.21% while Warsaw firmed 0.15%. Prague was 0.15%
lower, while Bucharest eased 0.25%. 
    
    
                   CEE       SNAPSHO   AT                       
                   MARKETS   T        1428 CET           
                             CURRENC                            
                             IES                         
                             Latest   Previous  Daily    Change
                             bid      close     change   in 2021
 EURCZK=  Czech                                         
 EURHUF=  Hungary                 0                     
 EURPLN=  Polish                                        
 EURRON=  Romania                                       
 EURHRK=  Croatia                                       
 EURRSD=  Serbian                 0                     
          Note:    calculated from              1800            
          daily                                 CET      
          change Latest   Previous  Daily    Change
                                      close     change   in 2021
 .PX      Prague             1164.16  1165.950   -0.15%   +13.34
                                             0                 %
 .BUX     Budapes            48275.7  48379.62   -0.21%   +14.65
          t                        3                           %
 .WIG20   Warsaw             2222.71   2219.45   +0.15%   +12.03
                                                               %
 .BETI    Buchare            11579.0  11608.18   -0.25%   +18.09
          st                       1                           %
 .SBITOP  Ljublja  <.SBITOP  1132.96   1138.83   -0.52%   +25.77
          na       >                                           %
 .CRBEX   Zagreb             1981.15   1981.15   +0.00%   +13.91
                                                               %
 .BELEX1  Belgrad  <.BELEX1   776.74    775.57   +0.15%   +3.76%
 5        e        5>                                    
 .SOFIX   Sofia               551.96    557.84   -1.05%   +23.33
                                                               %
                                                                
                             Yield    Yield     Spread   Daily
                             (bid)    change    vs Bund  change
                                                         in
          Czech                                          spread
          Republi                                        
          c                                              
 CZ2YT=R                                            s  
 CZ5YT=R                                            s  
 CZ10YT=                                           s  
          Poland                                                
 PL2YT=R                                            s  
 PL5YT=R                                            s  
 PL10YT=                                           s  
                   FORWARD                                      
                             3x6      6x9       9x12     3M
                                                         interba
                                                         nk
          Czech                 0.83      1.10     1.42     0.44
          Rep                                           
          Hungary               1.47      1.76     1.90     0.95
                                                         
          Poland                0.35      0.57     0.79     0.21
                                                         
          Note:    are for ask                                  
          FRA      prices                                
          quotes                                         
          *********************************************         
          *****************                              
 

    
    

 (Reporting by Anita Komuves; editing by Uttaresh.V and Krishna
Chandra Eluri)