Russia, Poland, Czech: Eastern Europe Bond, Currency Preview

By Zijing Wu and John Kohut

July 29 (Bloomberg) -- The following events and economic reports may influence trading in eastern European bonds and currencies today. Bond yields and exchange rates are from the previous day’s session.

Russia: The federal statistics office is scheduled to release data for consumer prices today. Inflation in the year through July 20 was 7.9 percent.

The government will sell up to 15 billion rubles ($482 million) of OFZ Federal Loan Bonds at 2 p.m. local time.

The ruble declined 0.9 percent to 30.9927 per dollar, and 0.2 percent to 44.0652 per euro. The movements left the ruble 0.9 percent lower at 36.8838 against the central bank’s target currency basket.

The yield on the 6.9 percent government bond due in February 2036 fell two basis points, or 0.02 percentage points, to 11.57 percent.

Poland: The central government is likely to leave its key interest rates unchanged at 3.50 percent, according a Bloomberg survey of economists.

The zloty weakened 0.6 percent to 4.1850 per euro.

The yield of Poland’s 5.5 percent bond due in October 2019 advanced one basis point to 6.19 percent.

Hungary: The unemployment rate was unchanged at 9.8 percent for the three months to June, according to the median estimate of seven economists surveyed by Bloomberg. The statistics office is due to publish the figure at 9 a.m.

The office also releases data on growth of producer prices, an early indicator of inflation, at 9 a.m. The annual figure rose to 6.8 percent in June from 6.2 percent in May, according to the median forecast of five economists surveyed by Bloomberg.

The forint declined 0.8 percent to 268.78 per euro.

The yield on Hungary’s 6.5 percent bond due in June 2019 dropped three basis points to 8.30 percent.

Czech Republic: Industrial output dropped for a ninth month in June, by an annual 17 percent, according to the median estimate of 10 economists surveyed by Bloomberg. The government is due to publish the figure between today and July 31. In May, output slumped by an annual 22 percent.

The koruna rose 0.3 percent to 25.527 per euro.

The yield on the country’s 4.6 percent bond due in August 2018 fell three basis points to 4.99 percent.

To contact the reporter on this story: Zijing Wu in London zwu17@bloomberg.net; John Kohut in London jkohut@bloomberg.net.