CEE MARKETS 1-Currencies weaker, key levels eyed

                                
 BUCHAREST, Feb 2 (Reuters) - Central European currencies
were mixed early on Monday, and market participants said
increased risk aversion could send them beyond key psychological
levels later in the day.
                                
 The Polish zloty <EURPLN=> was down some 0.3 percent at
4.4480 to the euro and dealers expect it to fall further. A key
Polish central banker said  interest rates could be lowered to 3
percent this year from the current 4.25 percent [ID:nL2414050].
                                
 "The zloty opened weaker on Monday and I think we may attack
the level of 4.50 against the euro today," said a dealer at a
Warsaw bank.
                                
 The forint <EURHUF=>, the most battered currency last week,
traded a shade firmer from Friday's close, but still around an
all-time low of 299.30 and dealers said the key 300 level could
be broken.
                                
 "Technically the forint should go past 300 ... so what could
prevent this? International sentiment perhaps, but that's not
positive either," one dealer in Budapest said.
                                
 Hungarian Prime Minister Ferenc Gyurcsany said on Sunday he
was "very concerned" about the forint trading near levels of
around 300 to the euro, as the forint's weakness could hurt
foreign currency borrowers [ID:nL1496502].
                                
 Analysts have also said levels weaker than 300 may hit many
households which took out loans in Swiss francs, euros and the
Japanese yen in the past years, as their monthly repayments will
rise at a time of serious economic woes and job losses.
                                
 The Romanian leu <EURRON=> fell 0.4 percent, while the Czech
crown <EURCZK=> traded 0.2 percent stronger.
                                
 "We remain on the edge of 28.00," a Prague dealer said.
"Once we close beyond 28.00 we can go further up. The dollar
looks weak and so do equities, so the chance that we could break
further up is higher than that we should go back."
----------------------MARKET SNAPSHOT-------------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2009 
Czech crown      <EURCZK=>  27.945   28       +0.2%    -4.27%
Polish zloty     <EURPLN=>   4.465    4.454   -0.25%   -7.84%
Hungarian forint <EURHUF=> 297.8    298.35    +0.18%  -11.5%
Croatian kuna    <EURHRK=>   7.382    7.364   -0.24%   -0.23%
Romanian leu     <EURRON=>   4.306    4.29    -0.37%   -6.77%
Serbian dinar    <EURRSD=>  94.31    94.318   +0.01%   -5.12%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR   +6 basis points to  95bps over bmk*
4-yr T-bond   CZ4YT=RR   +2 basis points to  +89bps over bmk*
8-yr T-bond   CZ8YT=RR   +10 basis points to  +119bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR    -1 basis points to  +340bps over bmk*
5-yr T-bond   PL5YT=RR    -1 basis points to  +262bps over bmk*
10-yr T-bond PL10YT=RR   +1 basis points to  +214bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR   +5 basis points to  +798bps over bmk*
5-yr T-bond   HU5YT=RR   +10 basis points to  +749bps over bmk*
10-yr T-bond   HU10YT=RR +16 basis points to  +591bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1026 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
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 (Reporting by Reuters bureaus, writing by Marius Zaharia,
editing by Chris Pizzey)