CEE MARKETS 2-FX down,HUF moves again to all-time low vs Swissie

                                
 * Forint leads losses in region following stocks, euro
                                
 * Polish bonds stronger, may weaken further ahead of auction
                                
 * Political instability weighs on leu
                                
 
                                
 (Adds fixed income, detail)
                                
 WARSAW, Sept 7 (Reuters) - Central European currencies fell
on Tuesday, with Hungary's forint leading losses as an easing
euro and falls on global stocks hit appetite for riskier assets.
                                
 The forint <EURHUF=>, the region's worst performer this
year, also headed towards its all-time low to the Swiss franc,
renewing concerns over the country's exposure to
franc-denominated debt.
                                
 In Hungary statistics office data showed the country posted
a July trade surplus of 240.7 million euros but with growth in
imports outpacing that of exports, indicating the contribution
of net exports to GDP will continue to decrease. [ID:nLDE6860F3]
                                
 On Monday, Hungary's central bank announced changes in rules
of commercial banks' mandatory reserves to help banks better
manage fluctuations in their liquidity and some market players
said it should help support a much weakened currency.
                                
 "Should a sufficient number of banks use this possibility,
the move would also benefit the forint as FX markets would have
one less concern," analysts at Commerzbank wrote in a note. 
                                
 "Last week CHFHUF marked a new all-time low (of particular
relevance for Hungarian mortgages) so a little support for the
forint would be quite welcome."
                                
 By 0913 GMT the forint <EURHUF=> was 0.6 percent weaker
against the euro, while Poland's zloty <EURPLN=> fell 0.4
percent. The Czech crown <EURCZK=> and Romania's leu <EURRON=>
each fell 0.2 percent.
                                
 
                                
 BONDS MIXED
                                
 The region's stocks were also in the red, falling some
0.4-1.2 percent, while the bonds market was mixed, with Polish
papers a touch stronger, and Hungary's bond yields up some 10-12
basis points across the curve.
                                
 "There's been selling along the entire bond curve," A
Budapest-based fixed-income trader said. "It seems that this is
more Hungary-specific now as we don't see the same in Poland."
                                
 In Poland, however, dealers said bonds may weaken slightly
during the day as investors are preparing their portfolios for a
Wednesday tender. The finance ministry will offer up to 3.0
billion zlotys in 5-year papers maturing in 2015.
                                
 In Romania, growing political instability and worries over
the country's debt strategy additionally weighed on the leu
<EURRON=> as some analysts say the finance ministry might have
to ditch its 7 percent yield cap sooner than expected in order
to meet its financing needs. [ID:nLDE68519B]
                                
 The country's government faces a potential series of close
parliamentary votes on its austerity measures this month and
some analysts say that could even put its IMF deal in jeopardy.
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2010 
Czech crown      <EURCZK=>  24.723   2h4.68    -0.17%   +6.45%
Polish zloty     <EURPLN=>   3.945    3.93    -0.38%   +4.03%
Hungarian forint <EURHUF=> 286.43   284.8     -0.57%   -5.61%
Croatian kuna    <EURHRK=>   7.281    7.297   +0.22%   +0.39%
Romanian leu     <EURRON=>   4.291    4.282   -0.21%   -1.25%
Serbian dinar    <EURRSD=> 105.4    105.29    -0.1%    -9.03%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR   +1 basis points to  117bps over bmk*
7-yr T-bond   CZ7YT=RR   +4 basis points to  +105bps over bmk*
10-yr T-bond   CZ9YT=RR   +7 basis points to  +102bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR   +1 basis points to  +410bps over bmk*
5-yr T-bond   PL5YT=RR   +3 basis points to  +402bps over bmk*
10-yr T-bond PL10YT=RR   +1 basis points to  +329bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR   +13 basis points to  +642bps over bmk*
5-yr T-bond   HU5YT=RR   +13 basis points to  +603bps over bmk*
10-yr T-bond   HU10YT=RR +16 basis points to  +518bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1113 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
                                
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 (Reporting by Reuters bureaus, writing by Dagmara
Leszkowicz, editing by Stephen Nisbet)