* FX, stocks mostly give up modest gains after China move
* Focus on debt tenders, Hungary sells bills later
* Polish bonds fall further on rate hike expectations
(Adds bonds, details, updates prices)
By Jason Hovet
PRAGUE, June 22 (Reuters) - Emerging European currencies slipped on Tuesday, giving up gains from the previous day after investors booked profits from a risk rally sparked by China loosening its grip on the yuan.
China's move touched off optimism a stronger yuan would lift the global economy through higher demand for goods and especially commodities, which pushed investors to snap up central European assets in the renewed risk-buying. The zloty <EURPLN=> fell 0.5 percent, after touching a one-month high on Monday, as investors booked profits. Hungary's forint <EURHUF=>, which firmed near its 50-day moving average on Monday before retreating, dipped 0.4 percent by 0900 GMT.
The Czech crown <EURCZK=> and the Romanian leu <EURRON=> -- the region's steadier currencies -- inched up about 0.2 percent.
"The leu is firming marginally this morning, but the Chinese bubble is breaking," said one trader in Bucharest. "Europe has problems, ratings downgrades for banks and all that, so risk aversion may return."
Stocks were mixed on Tuesday, with Prague <
> down 0.6 percent and off a one-month high, but Budapest < > and Bucharest < > up a touch. The Thomson Reuters Equity Emerging Markets Europe Index <.TRXFLDEETU> slipped 0.5 percent.Asset values in the region have fluctuated in recent months. Analysts expected limited lasting impact in central Europe from the loosening of the yuan, and the region's currencies are much less dependent on commodity prices than other emerging markets.
DEBT TENDERS STILL TEST
While lower-indebted central Europe has yet to shake off fears the euro zone's debt woes may spread to the region, analysts expect lower volatility to give a boost to currencies, which are seen gaining this year in the economic recovery.
Czech dealers said the crown was finding tough resistance at the 25.800 per euro level and would not likely weaken past that in coming sessions. It bid at 25.700 on Tuesday.
But central European governments are battling rising debt yields and markets are watching a Hungarian tender on Tuesday. Romania's average yield jumped 56 bps to 6.85 percent on one-year paper at a Monday auction. It sold less than planned.
Analysts said the ministry was signalling a strategy of only accepting yields below 7 percent, which was a risk and might prove impossible to keep up as Romania's funding needs pile up.
Polish bond prices fell for a second straight day on the back of expectations for interest rate hikes later this year.
"The market is starting to price in first rate hikes," said Remigiusz Zalewski, dealer at BRE bank in Warsaw. "Bonds may enter a falling trend in the next weeks or months."
Hungary's central bank kept rates at an all-time low of 5.25 percent on Monday, and declined to give clues as to its future rate trajectory but urged tight fiscal policy from the new government. [
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today in 2010 Czech crown <EURCZK=> 25.7 25.765 +0.25% +2.4% Polish zloty <EURPLN=> 4.054 4.039 -0.37% +1.23% Hungarian forint <EURHUF=> 279.44 278.06 -0.49% -3.25% Croatian kuna <EURHRK=> 7.197 7.2 +0.04% +1.56% Romanian leu <EURRON=> 4.221 4.23 +0.21% +0.39% Serbian dinar <EURRSD=> 103.66 103.8 +0.14% -7.51% Yield Spreads Czech treasury bonds <0#CZBMK=> 2-yr T-bond CZ2YT=RR -4 basis points to 147bps over bmk* 7-yr T-bond CZ7YT=RR +1 basis points to +160bps over bmk* 10-yr T-bond CZ9YT=RR +2 basis points to +150bps over bmk* Polish treasury bonds <0#PLBMK=> 2-yr T-bond PL2YT=RR +5 basis points to +419bps over bmk* 5-yr T-bond PL5YT=RR +7 basis points to +380bps over bmk* 10-yr T-bond PL10YT=RR +6 basis points to +317bps over bmk* *Benchmark is German bond equivalent. All data taken from Reuters at 1102 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 [
] 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 [ ] Economic Data Guide <ECONGUIDE> Official rates [ ] Emerging Diary [ ] Top events [ ] Diaries [ ] Diaries Index [ ] (Reporting by Reuters bureaus, writing by Jason Hovet, editing by Stephen Nisbet)