CEE MARKETS-FX firmer with expectations of Ukraine peace talks

By Alan Charlish

WARSAW, Feb 13 (Reuters) - Central European currencies were mostly firmer on Thursday, after President Donald Trump said he ordered top U.S. officials to begin talks on ending the war in Ukraine.

Trump spoke with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy by phone on Wednesday, and said both leaders expressed a desire for peace.

The conversations came after Trump's defense secretary earlier said Kyiv would have to give up its long-held goals of joining the NATO military alliance and regaining all of its territory seized by Russia, signalling a major shift in Washington's approach to the conflict.

"Reports about the possible start of talks on ending the war in Ukraine are strengthening the currencies of our part of Europe," Bank Millennium said in a note.

The Hungarian forint EURHUF= was 0.25% stronger against the euro at 401.40, firming to a fresh 3-1/2 month high.

In Poland, the zloty EURPLN= was 0.07% firmer at 4.165. Statistics office data showed on Thursday that economic growth accelerated slightly less than expected in the fourth quarter, as softer demand from trading partners offset robust consumer spending.

Economists expect that a rise in investment helped by European Union funds will help the economy grow faster in 2025.

The Czech crown EURPLN= was little changed at 25.064.

Czech 10-year bond yields CZ10YT=RR were 3.5 basis points lower at 3.973. Polish 10-year yields were almost 7 basis points lower at 5.923.

The Polish finance ministry sold bonds worth 10.8 billion zlotys on Wednesday, with demand at 13.46 billion zlotys.

"The large treasury bond auctions planned by the Ministry of Finance may still weigh slightly on the debt market in the coming months, but this effect may fade with the expected declines in inflation in the second quarter of this year," PKO BP said in a note.