CEE MARKETS 3-FX stronger;Polish and Romanian tbills sell well

                                
 * Currencies track euro, markets watch euro/dollar
                                
 * Romania sold 1.3 biln lei in t-bills, more than planned
                                
 * Poland sold 1.3 bln zlotys in t-bills at regular tender
                                
 
 (Updates throughout)
                                
 By Jason Hovet and Dagmara Leszkowicz
                                
 PRAGUE/WARSAW, Aug 9 (Reuters) - Rising stock markets lifted
central European currencies on Monday while better overall
sentiment boosted demand at treasury bills auctions in Romania
and Poland.
                                
 "It looks like investors already digested bad macroeconomic
data from the U.S. and good sentiment persisted," said one
Warsaw-based dealer.
                                
 Markets waited for further signals from the euro, the
region's main reference currency, which has been rising against
the dollar in recent days.
                                
 By 1327 GMT Hungary's forint <EURHUF=> led gains, rising 0.6
percent, while the Czech crown <EURCZK=>, Polish zloty <EURPLN=>
and Romanian leu <EURRON=> each rose 0.3 percent.
                                
 Stocks in the region were mostly in the black, rising
between 0.1-0.9 percent, with only Poland's WIG20 <.WIG20> index
down, falling 0.4 percent.
                                
 Bond markets were quiet and dealers in Hungary said the
market was waiting for the U.S. Federal Reserve's interest rate
decision on Tuesday and domestic data later in the week.
                                
 Czech yields ticked down on longer-dated bonds, with the
benchmark 2019 bond <CZ1002471=> yield at record lows around
3.58 percent and narrowing the spread with German bonds.
                                
 Czech consumer prices rose in July in line with
expectations. [ID:nLDE67807Z]
                                
 SHORT-DATED DEBT
                                
 Romania's finance ministry sold 1.3 billion lei in 6-month
treasury bills, more than it planned, with the average yield at
6.99 percent, a touch below the ministry's self-imposed maximum
yield of 7 percent.
                                
 Poland sold 1.3 billion zlotys in 52-week treasury bills,
with investors' demand almost tripling supply.
                                
 "Sentiment is just good. Foreign investors eye the Polish
debt," said Olgierd Zieblinski, dealer at Rabobank in Warsaw.
                                
 Poland has met 73 percent of its 2010 borrowing needs, seen
around 196.8 billion zlotys, a finance ministry official told
state news agency PAP late on Friday. [ID:nLDE6751S2]
                                
 Romanian Central Bank Governor Mugur Isarescu said on Friday
the finance ministry should consider being more flexible towards
market yield demands in bond auctions.
                                
 The ministry has imposed a de facto cap of 7 percent annual
return on primary offers, scaling down issuance or rejecting all
bids at numerous tenders, and then compensating for failed
auctions with short-term money market loans and euro-denominated
issues. [ID:nLDE6750VL]
                                
 Isarescu said he "discouraged" any strengthening of the leu.
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2010 
Czech crown      <EURCZK=>  24.735   24.811   +0.31%   +6.4%
Polish zloty     <EURPLN=>   3.979    3.99    +0.28%   +3.14%
Hungarian forint <EURHUF=> 278.5    280.05    +0.56%   -2.93%
Croatian kuna    <EURHRK=>   7.22     7.217   -0.04%   +1.24%
Romanian leu     <EURRON=>   4.227    4.241   +0.33%   +0.25%
Serbian dinar    <EURRSD=> 105.34   105.67    +0.31%   -8.98%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR   +1 basis points to  102bps over bmk*
7-yr T-bond   CZ7YT=RR    -12 basis points to  +105bps over bmk*
10-yr T-bond   CZ9YT=RR    -6 basis points to  +115bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR   +3 basis points to  +403bps over bmk*
5-yr T-bond   PL5YT=RR   +2 basis points to  +389bps over bmk*
10-yr T-bond PL10YT=RR    -1 basis points to  +328bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR    0 basis points to  +586bps over bmk*
5-yr T-bond   HU5YT=RR    -2 basis points to  +541bps over bmk*
10-yr T-bond   HU10YT=RR  -2 basis points to  +456bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1527 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
                                
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(Reporting by Reuters bureaus, writing by Jason Hovet,
Editing by Andrew Heavens)