CEE MARKETS 2-FX eases after rally on closing positions

                                
 * CEE currencies ease after Thursday rally 
                                
 * PLN could be supported by political development
                                
 
 (Adds fixed income)
                                
 WARSAW, April 10 (Reuters) - Emerging Europe currencies
eased slightly on Friday after a rally in the previous session
sparked by the closing of positions before the Easter holiday.
                                
 At 0903 GMT the Czech crown <EURCZK=>, Poland's zloty
<EURPLN=>, Romania's leu <EURRON=> and Hungary's forint
<EURHUF=> were all slightly weaker against the euro from the
previous close.
                                
 Analysts said trade on Friday was thin, and most stock
markets in the region are closed.
                                
 The forint and the zloty both broke their key respective
levels of 290 and 4.40 to the euro on Thursday.
                                
 "It seems yesterday's rally was due to the closing of
positions," said one Warsaw-based dealer. "Besides that, the
market is slightly more optimistic because before it had played
on weakening currencies and that scenario did not come about."
                                
 The dealer said the zloty should find additional support
from the fact that two Polish members of parliament quit the
main opposition party, the eurosceptical Law and Justice (PiS),
on Thursday. This could boost government efforts to enact a
constitutional amendment allowing for eventual euro adoption.
[ID:nL9958465]
                                
 "It is only possible technically as those two MPs are also
eurosceptics (and opposed to the constitutional change). However
it may open the way for further negotiations," the dealer said.
                                
 Late on Thursday Goldman Sachs wrote that the resignations
were bullish for the zloty but said it was still unclear how the
other small parties and independent MPs would vote.
                                
 It remains unclear whether the government will try to put
the zloty into the pre-euro European Exchange Rate Mechanism
(ERM-2) this year, as originally envisaged in its euro plan.
                                
 "Even if the constitutional change is approved by
parliament, ERM-2 entry may be delayed due to ongoing tensions
in the financial markets," the analysts at Goldman Sachs wrote
in their note. "But as 'tensions' typically refer to the
excessive weakness of the zloty, these may be less of an issue
if the zloty appreciates from here."
                                
 Bond markets were also quiet. Polish paper weakened along
the curve, especially at the long-end, and dealers said this was
an effect of Friday's switch tender supply.
                                
 "There's a possibility yields may go up further before the
auction," said Tomasz Bielanowicz, dealer at PKO BP in Warsaw.
                                
 The country's finance ministry will offer bonds due in 2014,
2019 and 2022 at a switch tender next Wednesday in exchange for
five-year DS0509 and two-year OK0709 papers maturing in 2009.
[ID:nWAR008162]
----------------------MARKET SNAPSHOT-------------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2009 
Czech crown      <EURCZK=>   26.42    26.365  -0.21%   +1.26%
Polish zloty     <EURPLN=>   4.357    4.344   -0.3%    -5.55%
Hungarian forint <EURHUF=>   288.99   288.2   -0.27%   -8.8%
Croatian kuna    <EURHRK=>   7.394    7.383   -0.15%   -0.39%
Romanian leu     <EURRON=>   4.115    4.122   +0.17%   -2.44%
Serbian dinar    <EURRSD=>   93.87    93.29   -0.62%   -4.68%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR   +11 basis points to  182bps over bmk*
4-yr T-bond   CZ4YT=RR    0 basis points to  +229bps over bmk*
8-yr T-bond   CZ8YT=RR    0 basis points to  +280bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR    -5 basis points to  +399bps over bmk*
5-yr T-bond   PL5YT=RR    -2 basis points to  +348bps over bmk*
10-yr T-bond PL10YT=RR    -2 basis points to  +293bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR    -25 basis points to  +868bps over bmk*
5-yr T-bond   HU5YT=RR    -60 basis points to  +793bps over bmk*
10-yr T-bond   HU10YT=RR  -48 basis points to  +667bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1003 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 David Stamp)