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CEE MARKETS-Romanian bond prices ease as central bank turns more hawkish

* Romanian government bond prices down ahead of auction

* Romanian central bank's rhetoric turned hawkish on Friday

* Regional central bankers' tone remains mixed

BUDAPEST/BUCHAREST, Aug 7 (Reuters) - Romanian government bond prices eased on Monday after the country's central bank on Friday followed up an interest rate hike by its Czech peer with hawkish comments. Friday's strong U.S. jobs data also underpinned expectations for a rise in global interest rates, but sentiment remained mixed in Central Europe. A rebound in inflation in the past year after a period of low or negative levels has also triggered some concerns in the region about tighter policy. But so far only the Czech central bank has reacted in interest rate policy. On Thursday, it delivered the first Czech rate hikes in almost a decade, and the European Union's first in over five years. Romania's central bank said on Friday reasons to tighten policy were adding up. In Poland, only some rate setters have voiced concerns, while the Hungarian central bank remains dovish and Serbia has had to intervene in the market repeatedly to stem the dinar's gains. Figures released on Monday on Romania's June net wages showed a continuing surge, with a 14.5 percent annual rise, and the central bank has already said that its inflation report, due on Tuesday, will show upwards revision in inflation forecasts. "Today's RON 200m 10Y T-bond auction might not seem particularly enticing for domestic market participants; so, despite the small planned amount, we might well see a partial allocation and/or a fairly wide tail," ING analysts said in a note. Romanian government bonds prices mostly eased. The bid yield on 2-year bonds rose 5 basis points to 1.36 percent. "We keep our Sell recommendation intact as we see a risk of 10y (10-year) ROMGB (Romanian government bond) yield climbing past 3.9 percent while the steepness of ROMGB curve increased by 7bp on the week likely also indicating a bearish market momentum ahead," Raiffeisen analysts said in a note. Hungarian government bonds, meanwhile, did not change and remained well bid, traders said. "Investors are even pondering if the central bank will do something... to weaken the forint," one trader said. The forint firmed 0.1 percent to 304.28 against the euro by 0906 GMT, while the crown, the leu and the zloty eased 0.1 percent. The forint remains near the 27-month highs it touched beyond 303 last week. Hungary's June industrial output data on Friday showed a sharp slowdown in annual growth, and Czech figures released on Monday mirrored that. But that was seen as a hiccup in both countries. A Reuters poll showed last week that the European Union's economic recovery is seen buoying most Central European currencies over the next year.

CEE MARKETS SNAPSH AT 1106 CET

OT CURRENCIES

Latest Previo Daily Change

us

bid close change in

2017

Czech crown 26.151 26.126 -0.10% 3.27% 0 0 Hungary 304.28 304.56 +0.09 1.49% forint 00 50 % Polish zloty 4.2475 4.2427 -0.11% 3.68% Romanian leu 4.5663 4.5626 -0.08% -0.69% Croatian 7.4050 7.4045 -0.01% 2.03%

kuna

Serbian 119.88 119.67 -0.18% 2.89% dinar 00 00 Note: daily calculated previo close 1800 change from us at CET

STOCKS

Latest Previo Daily Change

us

close change in

2017

Prague 1028.3 1026.2 +0.21 +11.5 8 1 % 9% Budapest 36749. 36678. +0.20 +14.8 98 22 % 3% Warsaw 2380.0 2380.1 -0.01% +22.1 8 6 9% Bucharest 8344.7 8328.9 +0.19 +17.7 0 2 % 8% Ljubljana 810.17 809.55 +0.08 +12.9 % 0% Zagreb 1887.9 1892.9 -0.26% -5.36% 9 7 Belgrade 723.48 729.39 -0.81% +0.85

%

Sofia 721.13 720.06 +0.15 +22.9 % 7%

BONDS

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

Republic

2-year -0.052 0.051 +061b +4bps

ps

5-year 0.1 0.053 +031b +5bps

ps

10-year 0.887 -0.011 +041b -1bps

ps Poland

2-year 1.823 0.015 +249b +0bps

ps

5-year 2.702 0.021 +292b +2bps

ps

10-year 3.366 0.01 +289b +1bps

ps

FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interb ank

Czech Rep <PR 0.53 0.62 0.71 0

IBOR=>

Hungary <BU 0.22 0.29 0.36 0.15

BOR=>

Poland <WI 1.77 1.785 1.86 1.73

BOR=>

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

(Reporting by Sandor Peto)