Halister News

(Bloomberg) -- Raiffeisen Bank cuts recommendation on Czech local-currency bonds to hold from buy on a three-month horizon following the securities’ outperformance, as rise in German yields may weigh on rates markets and with further koruna gains seen limited, analysts Stephan Imre and Gintaras Shlizhyus write in report.

• See “some juice left” in long-maturity Hungarian, Polish bonds amid “goldilocks environment” after gains fueled by fading of reflation trade, market-friendly central bank accommodation
  • Reiterate preference for Hungarian, Polish debt over Romania where “patience of investors could start to wane mainly due to the elevated fiscal risks amidst an ambitious refinancing plan”
• In Eurobonds: 
  • Cuts Poland euro-denominated debt to hold from buy after reaching trade target vs Lithuanian debt
  • Raises Ukraine USD notes to hold from sell “to limit further losses” amid global emerging-market gains, even while it sees the nation as “one of the fundamentally weakest emerging markets”
  • Recommends buying Macedonia on political stabilization, swap from Serbia into Croatia USD notes due to relative cheapness of the Adriatic nation’s securities

To contact the reporter on this story: Marton Eder in Budapest at meder4@bloomberg.net To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net Anil Varma