CEE MARKETS 2-Crown up before rate decision, other FX mixed

                                
 * Crown slightly stronger ahead of Czech rate decision
                                
 * Polish bonds ease on rate hike concerns, switch awaited
                                
 
 (Adds detail, fixed income)
                                
 WARSAW, June 23 (Reuters) - The Czech crown was slightly
stronger on Wednesday ahead of an interest rate decision, while
other currencies mostly slid as poor data from the U.S. housing
market added fuel to fears about the global economic recovery.
                                
 Markets widely expect the Czech central bank to keep rates
on hold at an all-time low of 0.75 percent and money markets
have priced in no change in rates before the end of the year.
Most analysts expect the first hike in the first part of 2011.
[ID:nLDE65G0SN]
                                
 "We think stable rates will continue for the rest of
2010, followed by a 50-75bp hike in the first half of next
year," analysts at Citigroup wrote in a note.
                                
 The central bank's decision is expected at 1100 GMT. A news
conference is scheduled for 1200 GMT.
                                
 Poland's central bank is also expected to leave interest
rates unchanged at a record low next Wednesday, but expectations
for a bigger rate hike by the end of 2010 lifted bond yields to
near ther highest levels since the start of June.
                                
 "Bond yields rose some 4 basis points on Tuesday, and
central banker comments on a possible rate hike added fuel to
the rises," said Marek Kaczor, a dealer at PKO BP.
                                
 A member of the central bank's Monetary Policy Council, Anna
Zielinska-Glebocka, told Reuters in an interview that Poland
should raise rates by 50 basis points in one move in the autumn
from 3.5 percent. [ID:nLDE65L1EM]
                                
 Poland will offer five-year bonds maturing in 2015 and
20-year papers maturing in 2029 in exchange for two- and 10-year
bonds due in 2010 at a switch tender on Wednesday, with results
expected at around 1000 GMT.
                                
 The Czech crown <EURCZK=> rose by 0.2 percent against the
euro by 0834 GMT, while Hungary's forint <EURHUF=> fell 0.3
percent and Poland's zloty <EURPLN=> was down 0.1 percent.
                                
 
                                
 CONCERNS PERSIST
                                
 Romania's leu <EURRON=> was a touch stronger against the
euro a day ahead of an expected court ruling on austerity
measures, a key factor for securing the country's IMF-led 20
billion euro aid package.
                                
 Analysts expect the cuts to pass, but the Constitutional
Court has a history of overturning reform packages, making it
more difficult for government to keep public spending in check.
                                
 "Naturally, there are some concerns about the ruling," said
one trader in Bucharest.
                                
 Stocks in the region were also in the red on Wednesday, with
Prague's bourse <.PX> leading losses, dragged down by Czech
power producer CEZ <CEZPsp.PR> which fell to two-week lows after
trading for the first day without dividend rights.
                                
 U.S. home sales unexpectedly fell in May, raising concerns
that the Federal Reserve may present a less upbeat economic
outlook later on Wednesday. [ID:nFEDAHEAD].
                                
 Central European markets have been under pressure in the
past few months from worries of possible contagion from the euro
zone debt crisis.
                                
 However, the region's better debt and growth outlook
prospects have provided downside support and its currencies are
seen appreciating this year.
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2010 
Czech crown      <EURCZK=>  25.705   25.745   +0.16%   +2.38%
Polish zloty     <EURPLN=>   4.051    4.048   -0.07%   +1.31%
Hungarian forint <EURHUF=> 279.65   278.76    -0.32%   -3.33%
Croatian kuna    <EURHRK=>   7.197    7.197       0%   +1.56%
Romanian leu     <EURRON=>   4.22     4.224   +0.09%   +0.41%
Serbian dinar    <EURRSD=> 103.7    103.5     -0.19%   -7.54%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR   +1 basis points to  157bps over bmk*
7-yr T-bond   CZ7YT=RR    -1 basis points to  +163bps 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   +2 basis points to  +417bps over bmk*
5-yr T-bond   PL5YT=RR   +2 basis points to  +385bps over bmk*
10-yr T-bond PL10YT=RR   +2 basis points to  +318bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR   +5 basis points to  +623bps over bmk*
5-yr T-bond   HU5YT=RR    -10 basis points to  +566bps over bmk*
10-yr T-bond   HU10YT=RR +5 basis points to  +490bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1034 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
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 (Reporting by Reuters bureaus, Writing by Dagmara Leszkowicz;
Editing by Stephen Nisbet)