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CEE MARKETS-Currencies, stocks rise on U.S. data, Serbian rates seen on hold

* Fx, stocks firm as U.S. data fuels risk appetite

* Dinar trades near 20-month high, central bank seen holding fire

* Czech crown near strongest levels since 2013

* Czech central bank data show further rise in fx reserves in June

BUDAPEST, July 10 (Reuters) - Central European currencies and stocks firmed on Monday as investors bought risky assets after strong U.S. employment figures for June helped Wall Street stocks to rise at the end of last week. Warsaw led equities gains, with its blue-chip index rising by two-thirds of a percent by 0826 GMT, driven by an 1.8 percent rise in oil group PKN Orlen. The dinar was flat ahead of a meeting of Serbian monetary policy makers who are expected to keep the region's highest key central bank interest rate on hold at 4 percent.

Trading at 120.11 against the euro, the dinar was a shade off Friday's 20-month highs a tick above the key psychological line at 120. Serbia's central bank has often bought euros in the market this year to stem dinar gains. But it is unlikely to cut rates as it wants to maintain investors' interest in dinar-denominated securities. While inflation is stable, it observes risks from an increasingly hawkish tone from the main global central banks, also underpinned by Friday's robust U.S. employment data, analysts said. "We would project rising resistance for the dinar," Raiffeisen analyst Wolfgang Ernst said in a note. "Setbacks could come from domestic topics, such as uncertainties over the renewal of (Serbia's) IMF deal (which will expire in early 2018), possible delays in the privatisation/restructuring of state-owned enterprises, but also from external side," Ernst added. A Reuters poll showed last week that analysts see the dinar retreating to 124 against the euro in the next 12 months.

Elsewhere, the Czech crown traded at 26.065 against the euro, approaching Friday's peak of 26.048, which was its strongest level since late 2013. Its rise has been fuelled by Friday's data which showed robust growth in industrial output and retail sales in May, reflecting the region's robust economic growth. The currency has been strengthening since in early April the Czech central bank removed a cap which had kept the crown weaker than 27 for years. Before the exit, the bank sold crowns worth tens of billions of euros in the market to defend the cap, boosting its foreign currency reserves End-June reserve figures released on Monday showed further rise last month, to 124.89 billion euros from a revised 124.01 billion euros in May, while the bank said it did not sell or buy any foreign currency in the spot market in May. Government bonds were mixed in the region. Poland's 10-year bond yield fell 6 basis points to 3.3065 percent.

CEE MARKETS SNAPSH AT 1026 CET

OT CURRENCIES

Latest Previo Daily Change

us

bid close change in

2017

Czech crown 26.065 26.088 +0.09 3.61% 0 0 % Hungary 307.83 308.03 +0.06 0.32% forint 00 00 % Polish zloty 4.2340 4.2356 +0.04 4.01%

%

Romanian leu 4.5690 4.5767 +0.17 -0.74%

%

Croatian kuna 7.4100 7.4115 +0.02 1.96%

%

Serbian dinar 120.11 120.11 +0.00 2.70% 00 00 % Note: daily calculated previo close 1800 change from us at CET

STOCKS

Latest Previo Daily Change

us

close change in

2017

Prague 994.33 992.18 +0.22 +7.89 % % Budapest 35629. 35503. +0.35 +11.3 47 69 % 3% Warsaw 2310.9 2295.8 +0.66 +18.6 7 2 % 4% Bucharest 8074.0 8044.7 +0.36 +13.9 1 9 % 6% Ljubljana 804.98 801.45 +0.44 +12.1 % 8% Zagreb 0.00 1871.9 +0.00 -100.0 7 % 0% Belgrade 705.63 709.77 -0.58% -1.64% Sofia 710.29 707.96 +0.33 +21.1 % 2%

BONDS

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

Republic

2-year 0.05 0 +066b +1bps

ps

5-year 0.179 0.078 +029b +10bp ps s 10-year 1.07 0 +052b +2bps

ps Poland

2-year 1.85 -0.18 +246b -17bps

ps

5-year 2.672 -0.023 +278b +0bps

ps

10-year 3.313 -0.066 +276b -5bps

ps

FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interb ank

Czech Rep <PR 0.46 0.55 0.66 0

IBOR=>

Hungary <BU 0.21 0.26 0.31 0.15

BOR=>

Poland <WI 1.753 1.78 1.83 1.73

BOR=>

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

(Reporting by Sandor Peto; Editing by Keith Weir)