Hungarian long-term government bond yields jumped on Tuesday after the central bank announced that it was ending its bond purchase programme and pledged to continue its rate hike cycle as it was battling inflation that surged to a 14-year-high. Bond yields on the long end of the curve rose about 15-20 basis points after the bank announced the end of its quantitative easing programme, two fixed-income traders in Budapest said. "The jump in yields became so large because liquidity is low," he said. "But these yields are so high that buyers will return soon." The yield on the 10-year bond was about 4.56%, while the 20-year yield was 4.7%. The Hungarian forint eased immediately after the 30 basis point base rate hike to 2.4%, as it disappointed some investors, but firmed after the central bank"s press conference. At 1513 GMT, the forint traded at 366.34 versus the euro, up 0.48% on the day. The currency is still just about one-and-a-half percent off its record low at the 372 mark hit last month. read more "The market reaction is neutral so far as investors are trying to understand what the rise of the rate corridor exactly means," an FX trader in Budapest said. "We need one or two days to see whether the market interprets this hike positively." The bank raised the rate on its overnight deposit facility by a larger-than-expected 80 basis points to 2.4% (HUODPO=ECI), aligning it with the base rate in a surprise move. read more Since its November policy meeting, the NBH has been forced to raise the interest rate on its one-week deposit facility several times to shore up the forint, which sank to a record low of 372 per euro last month. The one-week deposit rate, the tool that the bank uses to tackle short-term financial market volatility, now sits at 3.3%. The Czech crown was 0.34% stronger and trading at 25.315 versus the common currency as markets were expecting bigger rate hikes following hawkish comments from the central bank. Board member Tomas Holub said over the weekend the bank would need to deliver "higher-than-standard" rate hikes at its upcoming meetings, while Vice-Governor Marek Mora told Reuters he would likely consider a 50 or 75 basis point hike. read more Elsewhere, the Polish zloty added 0.21% and was trading at 4.6275 per euro. Most stocks in the region were lower, with Budapest (.BUX) losing 0.28% and Prague (.PX) falling 0.19%. Bucharest (.BETI) was down 0.54% and Warsaw (.WIG20) edged up 0.02%. CEE MARKETS SNAPSHOT AT 1613 CET CURRENCIES Latest Previous Daily Change bid close hm in 2021 EURCZK= Czech crown 25.3150 25.4020 +0.34% +3.61% EURHUF= Hungary forint 366.3400 368.1000 +0.48% -0.99% EURPLN= Polish zloty 4.6275 4.6372 +0.21% -1.48% EURRON= Romanian leu 4.9500 4.9500 +0.00% -1.72% EURHRK= Croatian kuna 7.5180 7.5225 +0.06% +0.39% EURRSD= Serbian dinar 117.4800 117.6050 +0.11% +0.08% Note: daily change calculated from 1800 CET Latest Previous Daily Change close change in 2021 .PX Prague (.PX) 1400.82 1403.5000 -0.19% +36.38% .BUX Budapest (.BUX) 50439.86 50581.29 -0.28% +19.79% .WIG20 Warsaw (.WIG20) 2214.79 2214.38 +0.02% +11.63% .BETI Bucharest (.BETI) 12344.20 12410.65 -0.54% +25.89% .SBITOP Ljubljana (.SBITOP) 1233.03 1226.25 +0.55% +36.87% .CRBEX Zagreb (.CRBEX) 2021.15 2016.02 +0.25% +16.21% .BELEX15 Belgrade (.BELEX15) 829.55 829.18 +0.04% +10.81% .SOFIX Sofia (.SOFIX) 607.23 609.48 -0.37% +35.68% Yield Yield Spread Daily (bid) change vs Bund change in Czech Republic spread CZ2YT=RR 2-year 2.9760 0.0210 +366bps +0bps CZ5YT=RR 5-year 2.8670 0.0630 +345bps +3bps CZ10YT=RR 10-year 2.5820 0.0530 +294bps +3bps Poland PL2YT=RR 2-year 2.8150 0.0050 +349bps -2bps PL5YT=RR 5-year 3.2810 0.0680 +386bps +4bps PL10YT=RR 10-year 3.2250 0.0160 +358bps -1bps FORWARD 3x6 6x9 9x12 3M interbank Czech Rep 4.40 4.13 3.99 3.28 Hungary 4.96 5.06 5.03 3.69 Poland 3.18 3.35 3.31 2.31 Note: FRA quotes are for ask prices ************************************************************** Additional reporting by Jason Hovet in Prague; Editing by Amy Caren Daniel Our Standards: The Thomson Reuters Trust Principles.