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CEE MARKETS-Currencies firm on Fed and C/As, bonds tread water

* Forint, zloty touch multi-week highs on Fed, U.S. CPI watched

* Czechs post May C/A deficit, but C/As help regional currencies

* Hungarian bonds rebound may have some room to continue-trader

BUDAPEST, July 14 (Reuters) - The forint hit a one-month high against the euro on Friday as Central European units continued to firm, still buoyed by Fed comments that were less hawkish than expected, and a healthy outlook for the region's current accounts. The forint and the zloty strengthened by 0.1 percent by 0856 GMT, to multi-week highs, and the Czech crown and the leu also firmed slightly. Federal Reserve Chair Janet Yellen indicated on Wednesday that the Fed's rate hikes could be gradual rather than fast. That has increased risk appetite in global markets and has also taken pressure off government bonds in the European Union's eastern members. Investors in this part of the world focus on the policy of the European Central Banks, which has shifted towards a more hawkish rhetoric, but also watch the Fed and U.S. long-term debt yields. Poland's 10-year bond yield dropped 2 basis points to 3.31 percent. Hungarian yields were flat, but the 10-year yield, after 30 basis point rise in the past three weeks to about 3.3 percent, may continue to retreat next week from current levels at 3.08 percent, one Budapest-based fixed income trader said. "Of course, only if nothing changes. It hinges on economic data (in developed markets) and U.S. and European bond market developments," the trader said, adding that the next key figures watched were U.S. inflation data due later on Friday. Hungary has filed a shelf registration in Japan for Samurai and Uridashi bonds issues, the Reuters news service IFR said.

The region's assets are less vulnerable to developments in the dollar and in crude prices than other emerging markets due to closer links with the euro zone and less reliance on commodities. Healthy economic growth and stability, including good current accounts helped by robust exports, have underpinned the region's currencies even though the region's central banks are unlikely to lift interest rates in the next quarters, except for Czechs. Czech current account figures showed slightly higher than expected deficit for May on Friday, but they follow a big surplus in April. Hungary's current account dynamics remains "very supportive" of the forint even though there is no monetary tightening in the horizon, and Poland's economic picture is evolving nicely, including the current account, Citigroup said in a note. Romania and Poland are also due to release current account data on Friday. Romania's central bank indicated in the minutes of its July 3 meeting that it was not worried over a widening of the current account deficit as industrial output continues to surge and foreign investments keep flow in.

CEE MARKETS SNAPSH AT 1056 CET

OT CURRENCIES

Latest Previo Daily Change

us

bid close change in

2017

Czech crown 26.088 26.100 +0.05 3.52% 0 0 % Hungary 306.48 306.85 +0.12 0.76% forint 00 50 % Polish zloty 4.2185 4.2236 +0.12 4.39%

%

Romanian leu 4.5640 4.5652 +0.03 -0.64%

%

Croatian kuna 7.4110 7.4045 -0.09% 1.94% Serbian dinar 119.98 120.25 +0.23 2.81% 00 00 % Note: daily calculated previo close 1800 change from us at CET

STOCKS

Latest Previo Daily Change

us

close change in

2017

Prague 1001.0 1000.9 +0.02 +8.62 9 2 % % Budapest 35886. 36143. -0.71% +12.1 71 37 4% Warsaw 2339.9 2350.8 -0.46% +20.1 2 3 2% Bucharest 8151.9 8160.9 -0.11% +15.0 0 9 6% Ljubljana 810.21 809.17 +0.13 +12.9 % 1% Zagreb 1856.3 1854.7 +0.09 -6.94% 6 6 % Belgrade 712.16 713.63 -0.21% -0.73% Sofia 711.10 709.48 +0.23 +21.2 % 6%

BONDS

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

Republic

2-year -0.1 -0.1 +052b -9bps

ps

5-year 0.049 0.036 +017b +5bps

ps

10-year 0.962 0 +039b +3bps

ps Poland

2-year 1.824 -0.087 +245b -7bps

ps

5-year 2.686 0.014 +281b +3bps

ps

10-year 3.323 -0.007 +275b +2bps

ps

FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interb ank

Czech Rep <PR 0.42 0.51 0.59 0

IBOR=>

Hungary <BU 0.21 0.23 0.29 0

BOR=>

Poland <WI 1.748 1.771 1.813 1.73

BOR=>

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

(Additional reporting by Luiza Ilie in Bucharest and Bartosz Chmielewski in Warsaw; Editing by Andrew Heavens)