CEE MARKETS 2-FX inch down, but mkts calm after falls

                                
 * FX steady somewhat before Romania election, Hungary cbank
                                
 * Currency moves freeze bonds, stocks edge up
                                
 
 (Adds bonds, updates prices)
                                
 PRAGUE, Nov 20 (Reuters) - Central European currencies edged
slightly lower on Friday after falls the previous session, with
markets calming somewhat before weekend elections in Romania and
next week's Hungarian central bank meeting.
Currencies, which had gained up to 4 percent this month,
stood on weaker footing after being swept up in selling on
Thursday as capital control pressures built in emerging markets.
                                
 Analysts, though, said policy measures to stem currency
firming in central Europe were not likely.
                                
 "The good news seems to be over, but this is partly a
technical correction (in the region)," a Prague dealer said.
                                
 Investors have cut back risk trades after Brazil unveiled on
Wednesday a new tax to curb capital inflows, which hit emerging
stock markets and boosted the dollar, whose weakness this month
has provided cheap funding options for investors. [ID:nSP488359]
                                
 Hungary's central bank is widely expected to cut interest
rates a half percentage point to 6.5 percent on Monday, and
dealers said anything less would be a surprise. [ID:nLI234800]
                                
 The forint <EURHUF=> was down 0.3 percent to bid at 268.4 to
the euro by 0956 GMT, and bond yields were steady after swings
this week with the currency.
                                
 "The condition is that they (the bank) indicate that
interest rate cuts will continue," a bond dealer said.
                                
 "There has been some concerns in the market in the past days
that they might signal a pause in the comments after the
meeting, in that case the yield falls can stop."
                                
 
                                
 LOOKING FOR RESULTS
                                
 Stock markets rebounded on Friday and the Polish zloty
<EURPLN=> edged down to 4.146 per euro before net inflation data
due later in the day. 
                                
 The central bank there has moved to an informal neutral bias
on interest rates from a long-held easing one, and markets see
rate hikes returning late next year.
                                
 The Czech crown <EURCZK=> was down at 25.7 to the euro, and
dealers saw weakening to 26 per euro levels, which they said may
act as a equilibrium level for markets to start next year.
                                
 The unit fell nearly 1 percent with peers on Thursday,
weighed down also after central bank Vice-Governor Miroslav
Singer said an interest rate cut would not be a mistake despite
being outvoted by colleagues this month. [ID:nPRG003790]
                                
 Romania's leu <EURRON=> has bucked the volatility and is
holding around 4.28 to the euro -- near a five-week high --
before the first round of presidential elections on Sunday. 
                                
 Dealers have speculated the central bank has intervened in
recent weeks to prop up the leu, but the bank has not commented.
                                
 "With price action distorted by the central bank, it is hard
to see the impact of the election," a dealer said.
                                
 "If we have a government, a budget and IMF talks resume, the
leu should rally ... but it's a long way until we get there."
                                
 The election winner will be able to pick a new prime
minister after the government collapsed last month, raising
concerns about the country's IMF-led aid package. [ID:nLH661116]
                                
 
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2009 
Czech crown      <EURCZK=>   25.704   25.657  -0.18%    +4.08%
Polish zloty     <EURPLN=>    4.146    4.134  -0.29%    -0.75%
Hungarian forint <EURHUF=>  268.39   267.6    -0.29%    -1.8%
Croatian kuna    <EURHRK=>    7.319    7.323  +0.05%    +0.63%
Romanian leu     <EURRON=>    4.281    4.275  -0.14%    -6.23%
Serbian dinar    <EURRSD=>   94.22    94.39   +0.18%    -5.03%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
3-yr T-bond   CZ3YT=RR   +7 basis points to  110bps over bmk*
7-yr T-bond   CZ7YT=RR   +1 basis points to  +113bps over bmk*
10-yr T-bond   CZ10YT=RR   +1 basis points to  +95bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR   +1 basis points to  +361bps over bmk*
5-yr T-bond   PL5YT=RR   +2 basis points to  +328bps over bmk*
10-yr T-bond PL10YT=RR   +2 basis points to  +290bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR    -1 basis points to  +530bps over bmk*
5-yr T-bond   HU5YT=RR   +1 basis points to  +480bps over bmk*
10-yr T-bond   HU10YT=RR  0 basis points to  +413bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1056 CET.
Currency percent change calculated from the daily domestic 
close at 1700 GMT.
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 (Reporting by Reuters bureaus, writing by Jason Hovet)