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CEE MARKETS-Some assets rebound after retreat on profit-taking

* Some currencies and stocks regain ground after retreat

* Crown retreats slightly, central bank comments could support it

* Bucharest stocks hit highest level since early 2008

BUDAPEST/PRAGUE, May 24 (Reuters) - Some Central European currencies and stocks rebounded on Wednesday after a retreat in the past two sessions due to profit-taking. China's credit rating downgrade by Moody's did not have an impact and with a lack of major international market moving factors, investors are watching technical issues and comments from central bankers in the region, market participants said. The forint and the zloty continued to hover near 308.5 and 4.2 against the euro at 0852 GMT, psychological levels around which they have been moving for weeks. With investors taking profit on regional assets in the second successive session, the forint eased 0.2 percent to 309.05. The zloty gained 0.1 percent to 4.199. Both the Hungarian and Polish central banks have issued dovish signals in recent weeks as they do not look worried over inflation, which retreated in the region last month after fast rebound from anaemic levels since mid-2016. Hungarian central bank deputy Governor Marton Nagy told Reuters late on Tuesday that the bank's record low base rate could remain unchanged until 2019 or even longer. While a pick-up in economic growth backs currencies across the region, the Czech crown could get more support from central bank rhetoric than its regional peers, analysts said. It gave up ground on Wednesday, easing 0.2 percent against the euro, while at 26.494 it still traded on the strong side of the 26.5 line. Czech central bankers have given signals in the past weeks that the odds on an interest rate hike rise if the crown does not strengthen. The head of Erste Group Bank's Czech asset management company said the Czech central bank (CNB) could be the first in the region to start lifting interest rates. CNB board member Vojtech Benda told Reuters that low interest rates boost housing prices into a spiral the bank will need to slow. Other comments from Benda, that third-quarter economic data will be key to the CNB's policy, also support the crown, CSOB analysts said in a note. "Our outlook for inflation and growth this year is somewhat less optimistic and therefore we don't expect higher rates this year," they said. "It is clear, however, that a vision of such scenario bodes well for the crown and it helps to preserve the good mood of recent weeks," they added. Bucharest's stock index hit a new 9-year high. Sentiment in the bourse have been lifted by an initial public offering and listing by Digi Communications this month. Budapest's index shed 0.5 percent, continuing to retreat from a record high hit on Monday.

CEE MARKETS SNAPSH AT 1052 CET

OT CURRENCIES

Latest Previo Daily Change

us

bid close change in

2017

Czech crown 26.494 26.452 -0.16% 1.94% 0 0 Hungary 309.05 308.55 -0.16% -0.07% forint 00 50 Polish zloty 4.1990 4.2014 +0.06 4.88%

%

Romanian leu 4.5520 4.5554 +0.07 -0.37%

%

Croatian kuna 7.4280 7.4305 +0.03 1.71%

%

Serbian dinar 122.75 122.88 +0.11 0.49% 00 50 % Note: daily calculated previo close 1800 change from us at CET

STOCKS

Latest Previo Daily Change

us

close change in

2017

Prague 1008.0 1007.9 +0.01 +9.37 1 1 % % Budapest 34493. 34730. -0.68% +7.78 48 94 % Warsaw 2302.2 2307.8 -0.24% +18.1 9 4 9% Bucharest 8557.0 8508.2 +0.57 +20.7 3 8 % 8% Ljubljana 788.51 791.34 -0.36% +9.88

%

Zagreb 1850.2 1850.8 -0.03% -7.25% 7 6 Belgrade 738.43 739.12 -0.09% +2.94

%

Sofia 660.74 655.00 +0.88 +12.6 % 7%

BONDS

Yield Yield Spread Daily (bid) change vs change Bund in Czech spread

Republic

2-year -0.098 0.083 +055b +9bps

ps

5-year -0.019 0.003 +032b +1bps

ps

10-year 0.828 -0.019 +043b -1bps

ps Poland

2-year 1.949 -0.008 +260b +0bps

ps

5-year 2.774 0.016 +312b +3bps

ps

10-year 3.349 0.016 +295b +2bps

ps

FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interb ank

Czech Rep PR 0.35 0.43 0.51 0

IBOR=>

Hungary <BU 0.18 0.21 0.29 0.15

BOR=>

Poland <WI 1.77 1.79 1.83 1.73

BOR=>

Note: FRA are for ask quotes prices ********************************************************* ***

(Editing by Ed Osmond)