CEE MARKETS 3-Zloty stronger on rate talk, cbank windfall

                                
 * Polish currency near 4-wk high
                                
 * Hungarian yields close to six-month lows
                                
 * Czech crown eases after weaker than expected trade data
                                
 
                                
 By Radu Marinas and Dagmara Leszkowicz
                                
 BUCHAREST/WARSAW, April 6 (Reuters) - The Polish zloty rose
close to a one-month high on Wednesday, outshining other central
European currencies following hawkish comments by the central
bank's governor.
                                
 The central bank also said on Wednesday it earned 6.5
billion zlotys last year, well ahead of the 1.7 billion the
government expected and all destined for state coffers.
[ID:nLDE7350CX]
                                
 The Polish currency started to rise markedly late on
Tuesday, breaching the key psychological level of 4.0 to the
euro after the bank raised rates by 25 basis points and governor
Marek Belka signalled further tightening. [ID:nLDE7341E3]
                                
 "The news about the central bank's profit along with the
recent comments of the central banker gave a boost to the Polish
currency," said Jakub Wiraszka, dealer at BRE bank in Warsaw.
                                
 By 1437 GMT the zloty <EURPLN=> was 0.4 percent stronger at
3.981.
                                
 The region's other currencies were mixed, with the Czech
crown <EURCZK=> easing 0.2 percent while Romania's leu <EURRON=>
was up 0.2 percent and Hungary's forint <EURHUF=> gained 0.1
percent.
                                
 Stocks across the region were all in positive territory,
rising 0.7-2.8 percent.
                                
 
                                
 ECB KEY
                                
 Dealers across the region expect policy moves by the
European Central Bank, widely expected to raise rates from the
record low of 1 percent on Thursday, to be the next driver for
CEE currencies.
                                
 "If the ECB statement is hawkish, we can see a slight profit
taking (on the zloty) but in the long term such a statement
should mean a retreat from the dollar, which could boost the
zloty," said one Warsaw-based dealer.
                                
 On the bond market, Polish papers were steady, while
Hungary's bonds gave up early gains, tracking the forint, but
yields remained close to 6-month lows.
                                
 "The forint exchange rate change was moderate and equity
markets continue to firm. I don't expect a trend change, the
bonds can firm further," one Budapest-based fixed income trader
said.
                                
 Hungary's central bankers agreed there was no immediate need
for further rate rises on the basis of the baseline scenario in
the latest inflation report, the minutes of the March 28 policy
meeting showed on Wednesday. [ID:nBUD005779]
                                
 Czech authorities sold 6.78 billion crowns worth of bonds
maturing in 2017 with healthy demand as investors took advantage
of lower prices despite growing expectations of an interest rate
rise. [ID:nLDE73514E]
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2011 
Czech crown      <EURCZK=>  24.386   24.346   -0.16%   +2.52%
Polish zloty     <EURPLN=>   3.981    3.997   +0.4%    -0.58%
Hungarian forint <EURHUF=> 263.85   264.05    +0.08%   +5.36%
Croatian kuna    <EURHRK=>   7.37     7.367   -0.04%   +0.14%
Romanian leu     <EURRON=>   4.101    4.108   +0.17%   +3.22%
Serbian dinar    <EURRSD=> 101.8    102.36    +0.55%   +4.05%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR    -7 basis points to  -14bps over bmk*
7-yr T-bond   CZ7YT=RR    -4 basis points to  +53bps over bmk*
10-yr T-bond   CZ9YT=RR    -1 basis points to  +65bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR    -2 basis points to  +316bps over bmk*
5-yr T-bond   PL5YT=RR    -2 basis points to  +300bps over bmk*
10-yr T-bond PL10YT=RR    -4 basis points to  +271bps over bmk*
The P
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR   +4 basis points to  +461bps over bmk*
5-yr T-bond   HU5YT=RR    0 basis points to  +425bps over bmk*
10-yr T-bond   HU10YT=RR  -2 basis points to  +380bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1637 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
                                
 For related news and prices, click on the codes in brackets:
All emerging market news [EMRG]
Spot FX rates
Eastern Europe spot FX <EEFX=>    Middle East spot FX <MEFX=>
Asia spot FX <ASIAFX=>       Latin America spot FX <LATAMFX=>
Other news and reports  
World central bank news [CEN]  Economic Data Guide <ECONGUIDE> 
Official rates [GLOBAL/INT]  Emerging Diary [EMRG/DIARY] 
Top events [M/DIARY]  Diaries [DIARY] Diaries Index [IND/DIARY] 
 (Reporting by Reuters bureaus; Editing by Hugh Lawson, John
Stonestreet)