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CEE MARKETS-Forint tests 27-month high

* Hungarian central bank makes no effort to talk down forint

* Regional central banks await rate clues from Fed, ECB

BUDAPEST, Aug 23 (Reuters) - Hungary's forint tested 27-month highs against the euro on Wednesday after Central Europe's most dovish central bank made no attempt to talk it down after its meeting on Tuesday. More than five years since the previous central bank rate increase within the European Union, the Czech central bank (CNB) this month lifted its record-low main rate. Other banks in the east of the bloc are unlikely to follow the CNB's move any time soon, however. The CNB had the lowest inflation target in the region at 2 percent and the jury is still out on whether inflation targets across the region are threatened by generally robust growth. Tuesday's statement from the National Bank of Hungary (NBH), which analysts expect to keep rates on hold for years, left some market participants puzzled over the course of the forint. Without any NBH efforts to talk it down from its recent strong levels, the currency firmed to 303.06 against the euro early on Wednesday before retreating to 303.27 by 0837 GMT. Nomura analyst Peter Attard Montalto said in a note that subtle changes in the language of Tuesday's NBH statement may herald further monetary loosening at its next meeting in September when it also releases quarterly economic forecasts. The central bank notred that good macroeconomic data had generally strengthened Central European currencies. "But they know that a firming in the summer time is a temporary, though natural, process, with markets illiquid," said ING analyst Peter Virovacz. "They will wait for their Sept. 19 meeting. By then the Fed and the ECB may shed more clarity on their intentions." The analyst added that a cut in the bank's overnight deposit rate, which stands at -0.05 percent, could be a sufficiently strong response if the forint firms towards the 300 line. Central European assets were rangebound across the board in thin trade. The crown firmed 0.1 percent to 26.084 against the euro, but Monday's announcement that the government will not sell Treasury bills in September could herald a crown weakening, Raiffeisen analyst Stephan Imre said in a note. Big Treasury bill expiries in the coming weeks may cause a crown sell-off by foreign investors who bought huge amounts of the Czech currency before the CNB in April removed a cap that had kept the crown weaker than 27 against the euro for years. "Thursday's T-bills auction might become the last possibility for T-bill investments in Q3 and should therefore meet healthy demand," Imre said.

CEE MARKETS SNAPSH AT 1037 CET

OT CURRENCIES

Latest Previo Daily Change

us

bid close change in

2017

Czech crown 26.084 26.104 +0.08 3.54% 0 5 % Hungary 303.27 303.34 +0.02 1.83% forint 00 50 % Polish zloty 4.2759 4.2758 +0.00 2.99%

%

Romanian leu 4.5846 4.5855 +0.02 -1.08%

%

Croatian 7.4030 7.4045 +0.02 2.05% kuna % Serbian 119.23 119.41 +0.15 3.46% 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 1035.0 1033.7 +0.13 +12.3 4 3 % 1% Budapest 37512. 37622. -0.29% +17.2 90 47 2% Warsaw 2388.1 2387.2 +0.04 +22.6 8 4 % 0% Bucharest 8341.6 8351.5 -0.12% +17.7 5 8 4% Ljubljana 815.96 816.59 -0.08% +13.7

1%

Zagreb 1898.9 1901.6 -0.14% -4.81% 7 7 Belgrade 724.04 722.78 +0.17 +0.93 % % Sofia 722.12 719.67 +0.34 +23.1 % 4%

BONDS

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

Republic

2-year 0.011 0.037 +072b +3bps

ps

5-year 0.077 0.045 +035b +3bps

ps

10-year 0.902 0.02 +049b +1bps

ps Poland

2-year 1.775 0 +249b -1bps

ps

5-year 2.663 0.011 +294b -1bps

ps

10-year 3.343 0.019 +293b +1bps

ps

FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interb ank

Czech Rep <PR 0.6 0.7 0.8 0

IBOR=>

Hungary <BU 0.22 0.275 0.34 0.15

BOR=>

Poland <WI 1.77 1.81 1.86 1.73

BOR=>

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

(Reporting by Sandor Peto; Editing by David Goodman)