After upgrading S & P, Hungarian assets slightly advanced

                * S & P upgrade provides support for Hungarian badets
* Persistent Czech growth could strengthen badysts of the crown
* Romanian officials meet again for a controversial bank tax

By Sandor Peto
BUDAPEST, 18 February (Reuters) - The forint and the hungarian
Government bonds rallied slightly Monday after
Poor's upgraded his sovereign credit rating belatedly
Friday.
Price changes were modest, with the upgrade from S & P to "BBB" rising from
"BBB-" was not a surprise. The main rating agencies have
the financial markets in their badessment of the situation of Hungary
economic outlook, dealers and badysts said.
The forint strengthened by 0.1% to 317.99 against
the euro at 09:17 GMT, a stronger forint than last month
average, while the other Central European currencies
water.
Hungarian government bond yields fell 1 to 2 basis points
starting on Friday. The 10-year paper traded at 2.73 percent, down 2
basis points, while the corresponding yield of Poland
slightly increased by 2 basis points to 2.69%.
"With the United States closed, the activity is weak, but when
America comes back, we could see a further decline in yields, "a
A trader based in Budapest said.
"Yields and swaps are still at the top of previous months"
Range of 20 to 25 basis points and drop of about 10 basis points
is on the cards this week, "said the trader.
Fitch could also improve Hungary's BBB- as part of a revision
Friday, but "on Eurobond and CDS markets the screen
Upgrading seems profitable, "says Gintaras, an badyst at Raiffeisen
Slizhyus said in a note.
Czech 10-year bonds rose 4%
points at this year's highest level at 1.85 percent.
The krona stagnated at 25,697 against the euro,
near the peaks of this month. Czech economy faster than expected
growth reflected in the fourth quarter data released last week could
increase the crown to 25.3 in the coming weeks, the note Raiffeisen
I said.
The zloty, stable at 4,3309, at 3 and a half months last week
wages, retail sales, production
and other data due this week, Warsaw-based Santander badysts
I said.
"After ... disappointing stocks for December, we're expecting
some improvements in the majority of domestic versions. This
should support the zloty and slightly increase yields, "they said
in a note.
Central European equities have mostly increased due to growing optimism
global markets for the progress of trade negotiations between
States and China.
The positive atmosphere has also helped the Bucharest shares to continue
regain ground after a sharp decline in the last two months,
with their first-order index up 1.1 percent.
Concerns persist about new taxes on Romanian banks and
energy companies launched this year.
The Romanian Ministry of Finance and the representatives of the central bank must
to hold a new round of discussions on the controversial banking tax.


The information of EWC to
MARKETS 1017 CET
CURRENCI
ES
Last previous daily change
closing of the offer changes in 2019
Czech                                             
 Hungary                                           
 Polish                                            
 Romanian                                          
 Croatian                                          
 Serbian                                           
 Rating: calculated from 1800 CET
Daily
change

Last previous daily change
near change in 2019
Prague 1062.14 1058.230 + 0.37% + 7.66%
0
Budapest 40445.95 40179.84 + 0.66% + 3.34%
Warsaw 2333.64 2338.20 -0.20% + 2.50%
Bucharest 7740.37 7657.08 + 1.09% + 4.83%
Ljubljana  <.SBITOP    835.53    833.84    +0.20%    +3.89%
            >                                       
 Zagreb 1764.24 1769.31 -0.29% + 0.88%
Belgrade   <.BELEX1    682.89    697.78    -2.13%   -10.35%
            5>                                      
 Sofia 576.43 577.24 -0.14% -3.03%
OBLIGATIONS
Daily performance gap
(auction) exchange vs Bund change
in
Czech propagation
Republic
2 years                                         
   5 years                                         
   10 years                                       
 Poland
2 years                                         
   5 years                                         
   10 years                                       
            AGREEMENT ON FRONT RATE
T
3x6 6x9 9x12 3m
interbank
k
Rep. Czech 2.08 2.11 2.13 2.01
                                                   
 Hungary 0.38 0.59 0.79 0.15

Poland 1.73 1.71 1.71 1.72

Note: FRA are for the requested prices
quotes
************************************************
*************


(Report by Sandor Peto
Edited by Gareth Jones)