CEE MARKETS-Hungary's forint slides with market focus on EU funds

By Anita Komuves and Alan Charlish BUDAPEST/WARSAW, Nov 30 (Reuters) - The Hungarian forint slipped on Wednesday, as investors stayed on the sidelines ahead of an announcement from the European Commission due later in the day on EU funds earmarked for the country. Concerns over European Union funds have been a risk for the forint this year, while Hungary and the EU executive have been locked in rule-of-law disputes. The EC around 11 GMT on Wednesday is likely to approve Hungary's post-pandemic recovery plan to keep open the possibility of EU disbursements later, but hold back any payouts until Budapest fulfils all agreed conditions, sources have said. At 0905 GMT, the forint was 0.12% weaker against the euro at 408.50. Long-term government bond yields were stable on Wednesday, with the yield on the 10-year benchmark bond around 8.08%, a fixed-income trader said. "The past two days have been very quiet, and I do not expect much movement in the market until the Commission's announcement," he said. Investors also eyed the central bank's two-month deposit tender to be held later in the day, offered at a floating rate equalling the base rate, which stands at 13%. The central bank also offers a quick one-day deposit facility at 18% on a daily basis. The two-month deposit tender "could appeal to someone who expects the quick deposit facility to be scrapped soon, but I do not see much of a chance for that," the FI trader said. Last Tuesday, the central bank left its base rate unchanged and said tight monetary conditions will be maintained over a prolonged period to ensure that inflation expectations are anchored. In Poland, the zloty was 0.16% firmer at 4.677 after inflation for November came in at 17.4%, below analysts' estimates. "I don't think this is going to have a major impact, this would be a different thing if we had expectations of rate-hikes, but we don't," said Piotr Poplawski, senior economist at ING in Warsaw The Czech crown was flat at 24.357. CEE SNAPSHOT AT 1005 MARKETS CET CURRENCIES Latest Previous Daily Change bid close change in 2022 EURCZK Czech 24.3570 24.3570 +0.00 +2.11% = crown % EURHUF Hungary 408.5000 408.0000 -0.12% -9.57% = forint EURPLN Polish 4.6770 4.6845 +0.16 -1.84% = zloty % EURRON Romania 4.9270 4.9170 -0.20% +0.43% = n leu EURHRK Croatia 7.5480 7.5495 +0.02 -0.40% = n kuna % EURRSD Serbian 117.2600 117.3350 +0.06 +0.27% = dinar % Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2022 .PX Prague 1218.44 1217.7500 +0.06 % .BUX Budapes 45613.90 45780.62 -0.36% -10.07% t .WIG20 Warsaw 1736.84 1736.19 +0.04 -23.38% % .BETI Buchare 11730.66 11730.66 +0.00 -10.19% st % .SBITO Ljublja 1069.23 1069.92 -0.06% -14.83% P na .CRBEX Zagreb 1901.25 1902.68 -0.08% -8.57% .BELEX Belgrad <.BELEX15 815.10 814.97 +0.02 -0.69% 15 e > % .SOFIX Sofia 598.73 598.64 +0.02 -5.81% % Yield Yield Spread Daily (bid) change vs change Bund in Czech spread Republi c CZ2YT= ps CZ5YT= ps CZ10YT ps Poland PL2YT= ps PL5YT= ps PL10YT ps FORWARD 3x6 6x9 9x12 3M interba nk Czech < 7.05 6.71 6.30 7.25 Rep PRIBOR=> Hungary < 13.43 12.08 11.18 15.30 BUBOR=> Poland < 7.32 7.30 6.99 7.31 WIBOR=> Note: are for ask prices FRA quotes ************************************************* ************* (Reporting by Alan Charlish in Warsaw and Anita Komuves in Budapest; Editing by Sherry Jacob-Phillips)