* CEE FX off previous gains as euro fell
* Leu bucks falling trend after govt survives vote
* No need to intervene on the FX market, Polish cbanker says
(Adds fixed income, background)
WARSAW, June 16 (Reuters) - The Romanian leu held gains on Wednesday after parliament rejected a no-confidence vote that would have sidetracked the country's IMF aid package, while other currencies trimmed their previous gains as the euro lost momentum after its recent rally.
The Romanian government's survival of the vote gave it a mandate to cut public spending as required under the IMF deal, but a tight margin of victory raised concerns over the coalition's ability to push beyond the austerity plan. [
]"The failure of the no-confidence vote should provide some relief to investors, at least until September," analysts at Citibank wrote in a note.
"The narrow margin of the victory, however, paints a challenging picture in terms of the government's ability to press ahead with the reform agenda under the umbrella of the IMF programme."
Romania followed Hungary's lead during the financial crisis by securing a 20 billion euro International Monetary Fund/European Union lifeline to alleviate funding worries.
By 0928 GMT the leu <EURRON=> was almost unchanged against the euro.
Hungary's forint <EURHUF=> fell 0.4 percent and the Czech crown <EURCZK=> was 0.2 lower as the euro - the region's main reference currency - fell against the dollar after it had briefly touched 2-week highs earlier in the day.
Czech current account data showed a surprise 12.4 billion crown surplus in April, but the data had little impact on the currency. [
]Stock markets rose 0.3 percent to 2.9 percent, led by Bucharest <
>.
NO FX INTERVENTIONS?
Polish central bank Monetary Policy Council (MPC) member Jerzy Hausner said on Wednesday Poland does not need interventions on the forex market, but the exchange rate is key for monetary policy. [
]His comments fit the view of newly appointed bank Governor Marek Belka who said earlier in June it should not be anyone's role to suggest that any particular zloty exchange rate is being targeted.
The Polish currency <EURPLN=> has swung back and forth in recent months. It has gained almost 3 percent since June 4, when it touched its key psychological level of 4.2 against the euro.
It was trading at 4.072 to the euro, 0.4 percent weaker since Tuesday's close.
In April the central bank intervened to counter zloty strength, while there were reports in May that the finance ministry had sold euros on the market in a move to curb a sharp depreciation of the unit.
Polish bonds were relatively stable ahead of 10-year bonds auction, while Hungary's papers eased, with bond yields rising some 5 basis points and the Czech bonds were a touch stronger before a benchmark 2024 bond auction.
The Czech finance ministry has sold more than it planned in the last five auctions and is starting to issue more to meet record borrowing this year.
"Risks are almost 100 percent that MoF would sell higher amount should the demand and prices be close to market," Komercni Banka dealers said. --------------------------MARKET SNAPSHOT-------------------- Currency Latest Previous Local Local
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today in 2010 Czech crown <EURCZK=> 25,682 25,633 -0.19% +2.48% Polish zloty <EURPLN=> 4,072 4,057 -0.37% +0.79% Hungarian forint <EURHUF=> 279,65 278,64 -0.36% -3.33% Croatian kuna <EURHRK=> 7,21 7,211 +0.01% +1.38% Romanian leu <EURRON=> 4,222 4,223 +0.02% +0.36% Serbian dinar <EURRSD=> 103,45 103,063 -0.37% -7.32% Yield Spreads Czech treasury bonds <0#CZBMK=> 2-yr T-bond CZ2YT=RR +4 basis points to 158bps over bmk* 7-yr T-bond CZ7YT=RR +1 basis points to +166bps over bmk* 10-yr T-bond CZ9YT=RR -1 basis points to +157bps over bmk* Polish treasury bonds <0#PLBMK=> 2-yr T-bond PL2YT=RR +1 basis points to +411bps over bmk* 5-yr T-bond PL5YT=RR +3 basis points to +372bps over bmk* 10-yr T-bond PL10YT=RR +2 basis points to +306bps over bmk* Hungarian treasury bonds <0#HUBMK=> 3-yr T-bond HU3YT=RR +6 basis points to +633bps over bmk* 5-yr T-bond HU5YT=RR +8 basis points to +584bps over bmk* 10-yr T-bond HU10YT=RR +7 basis points to +488bps over bmk* *Benchmark is German bond equivalent. All data taken from Reuters at 1128 CET. Currency percent change calculated from the daily domestic close at 1600 GMT.
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