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CEE MARKETS-Currencies ease after ECB signals tweak to stimulus

BUDAPEST, June 28 (Reuters) - Central European currencies eased on Wednesday after comments from ECB President Mario Draghi on monetary tightening stoked fears that the region's higher-yielding but riskier assets may lose some of their appeal to investors. By 0809 GMT, the Czech crown and the Polish zloty were both down 0.2 percent and the Hungarian forint recovered from early lows above 310 against the euro to trade flat. "If worries over a tightening monetary policy in the euro zone continue to occupy markets, the crown will stay under pressure in the coming days," CSOB analysts said. The weakening comes before Czech rate-setters hold a policy meeting on Thursday at which they are expected to hold rates near zero, where they have been since 2012. An analyst poll this week forecast the central bank's first rate hike is getting closer and could come this year rather than next year as previously expected. The leu held steady after gains posted in the wake of the nomination of a new prime minister, raising hopes of an end to Romania's political crisis. "The calmer political backdrop is helping the Romanian currency," ING analysts said in a note. The prospect of political noise returning to "normal levels" could support the leu in the near and medium term, they said.

CEE MARKETS SNAPSHOT AT 1009 CET

CURRENCIES

Latest Previous Daily Change bid close change in 2017 Czech crown 26.3090 26.2580 -0.19% 2.65% Hungary forint 309.8500 309.9450 +0.03% -0.33% Polish zloty 4.2275 4.2208 -0.16% 4.17% Romanian leu 4.5614 4.5631 +0.04% -0.58% Croatian kuna 7.4150 7.4065 -0.11% 1.89% Serbian dinar 121.0100 121.2300 +0.18% 1.93% Note: daily change calculated from previous close at 1800 CET

STOCKS

Latest Previous Daily Change close change in 2017 Prague 975.89 976.00 -0.01% +5.89% Budapest 35549.08 35645.77 -0.27% +11.08

%

Warsaw 2337.08 2345.05 -0.34% +19.98

%

Bucharest 8173.38 8204.71 -0.38% +15.36

%

Ljubljana 797.60 796.79 +0.10% +11.15

%

Zagreb 1871.47 1870.98 +0.03% -6.18% Belgrade 709.46 712.30 -0.40% -1.10% Sofia 698.71 697.12 +0.23% +19.15

% BONDS

Yield Yield Spread Daily (bid) change vs Bund change

in

Czech Republic spread 2-year 0.073 0 +064bps -1bps 5-year 0.055 0.08 +032bps +7bps 10-year 0.959 0.063 +057bps +3bps

Poland

2-year 1.954 -0.045 +252bps -5bps 5-year 2.667 0.023 +293bps +1bps 10-year 3.304 0.039 +292bps +1bps FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interba nk

Czech Rep 0.35 0.44 0.52 0 Hungary 0.19 0.25 0.28 0.15 Poland 1.7575 1.795 1.83 1.73 Note: FRA quotes are for ask

prices

(Reporting by Jason Hovet and Luiza Ilie; Editing by Louise Ireland)