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CEE MARKETS-Bonds, forex ease on expectations of hawkish ECB, Fed comments

* Bond yields track euro zone rise ahead of ECB, Fed speakers

* Currencies ease less than other emerging market units

* Romanian headline, Hungarian core inflation rises

* Czech central bank sees risk of crown weakness-minutes

BUDAPEST, July 11 (Reuters) - Central European government bonds and currencies eased slightly on Tuesday amid expectations for hawkish comments from Federal Reserve and European Central Bank (ECB) officials. Economic data released in the region on Tuesday showed a rise in Romanian headline and Hungarian core inflation, but most of the region's central banks are not expected to start lifting their interest rates this year. Euro zone bond yields resumed their rise ahead of speeches and Fed chair Janet Yellen on Wednesday. Hungarian and Polish government bonds tracked the move, with their yields rising by 1-3 basis points. Their respective 10-year yields traded at 3.18 and 3.33 percent. The rise is caused by international factors rather than the Hungarian June inflation figures, traders and analysts said. Annual core inflation rose to 2.4 percent from 2.1 percent in may, although the headline figure which also includes volatile food and energy prices dropped to 1.9 percent from 2.1 percent. "In the shorter run... inflation should remain on the softer side of the central bank's inflation target band (3 percent +/- one percentage point), thus we do not expect any change in the policy rate this and next year," said Gergely Urmossy, analyst of Erste group. The Czech crown led a mild weakening of regional currencies, shedding 0.2 percent against the euro, while the forint and the zloty eased 0.1 percent. Shielded by the region's relative stability and economic growth, they weakened much less than other emerging market units like the lira, the rouble and the rand. The Czech central bank said in the minutes of its last meeting that the crown's exchange rate "remained a persisting source of uncertainty" as the currency may ease on selling by investors who bought it before the bank removed its cap on the currency's strength in April. It said its first rate hike in almost a decade might come later than its projection for the third quarter of 2017 as it needed to make sure that "the inflation pressures arising from the domestic economy were robust enough to outweigh any anti-inflationary shocks stemming from abroad". The Czech Republic is due to release June inflation figures on Wednesday and analysts expect a drop in the annual rate to 2.3 percent from 2.4 percent in May. Romanian data showed a pick-up to 0.9 percent from 0.6 percent, still a lower level than elsewhere in the region, but analysts expect a fast pick-up later this year.

CEE MARKETS SNAPSH AT 1045 CET

OT CURRENCIES

Latest Previo Daily Change

us

bid close change in

2017

Czech crown 26.138 26.094 -0.17% 3.32% 0 5 Hungary 308.28 308.10 -0.06% 0.18% forint 00 50 Polish zloty 4.2425 4.2394 -0.07% 3.80% Romanian leu 4.5685 4.5704 +0.04 -0.73%

%

Croatian kuna 7.4030 7.4015 -0.02% 2.05% Serbian dinar 120.13 120.19 +0.05 2.68% 00 00 % Note: daily calculated previo close 1800 change from us at CET

STOCKS

Latest Previo Daily Change

us

close change in

2017

Prague 997.79 999.00 -0.12% +8.27

%

Budapest 35776. 35724. +0.15 +11.7 74 92 % 9% Warsaw 2304.6 2300.6 +0.17 +18.3 1 6 % 1% Bucharest 8143.6 8112.1 +0.39 +14.9 2 6 % 4% Ljubljana 809.93 804.90 +0.62 +12.8 % 7% Zagreb 1860.4 1860.6 -0.01% -6.74% 6 1 Belgrade 717.73 716.42 +0.18 +0.05 % % Sofia 707.28 709.26 -0.28% +20.6

1% BONDS

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

Republic

2-year 0.12 0.12 +072b +11bp ps s 5-year 0.156 0.04 +025b +2bps

ps

10-year 1.07 -0.023 +051b -5bps

ps Poland

2-year 1.833 -0.096 +243b -10bps

ps

5-year 2.706 0.039 +280b +2bps

ps

10-year 3.351 0.034 +279b +1bps

ps

FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interb ank

Czech Rep <PR 0.32 0.5 0.5 0

IBOR=>

Hungary <BU 0.21 0.23 0.25 0.15

BOR=>

Poland <WI 1.755 1.8 1.835 1.73

BOR=>

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

(Reporting by Sandor Peto; Editing by Hugh Lawson)