CEE MARKETS-Currencies rebound, still under pressure from Fed expectations

* Currencies, bond prices rebound after fall on U.S. data

* Robust Czech data fail to lift crown significantly

* Hungary cbank seen keeping markets awash in money

* Romania holds bond tender, after scrapping a sale last week

BUDAPEST, Oct 9 (Reuters) - Central European currencies and bonds rose on Monday to recover from a fall triggered by U.S. jobs data which strengthened expectations for a December interest rate hike, with a flow of local data releases underpinning healthy economic growth. Czech figures released on Monday showed a fall in unemployment to a record low in September and a higher-than-expected 5.8 percent annual rise in industrial output in August. Annual inflation rose to 2.7 percent in September, the highest in five years. The figures bolstered expectations that the Czech central bank (CNB) will follow up its August interest rate hike with another rise next month to defend its 2 percent inflation goal. The figures still failed to lift the Czech crown significantly, after it retreated sharply on Friday, along with other regional currencies, after the U.S. jobs data. The crown rose against the euro to 25.869 by 0909 GMT. Last week, at 25.789 it touched its highest levels since the CNB removed a cap that had kept the crown weaker than 27 versus the euro for more than three years. The forint and the zloty were recovered from Friday's lows, and government bond yields fell in the region mostly fell after a jump on Friday. The forint, trading at 312.35 against the euro, was off the 5-month low hit on Friday at 312.58, but near it. The Hungarian central bank (NBH) is expected to keep liquidity in forint interbank markets abundant, using Monday's weekly fx swap tender, dealers said. "In the technical sense, the forint should strengthen, but it will not," one Budapest-based trader said, adding that the NBH was likely to keep the forint weak with its dovish policies. With the European Central Bank not rushing to follow the example of the Fed's tightening, Central European rate-setters have been split. The Czechs, having the lowest inflation target in the region, have started to lift interest rates. Hungary has been easing monetary policy and Serbia surprised last month, cutting the region's highest central bank benchmark rate to 3.75 percent by 25 basis points. It holds a rate-setting meeting on Monday, and 11 out of 12 analysts and traders polled last week projected that it would not change rates this time. The dinar traded a touch firmer, at 119.15 against the euro. Romania, where the central bank struggles with a liquidity squeeze in leu markets, the government is due to hold a tender of seven-week bonds. Last week Romania rejected all bids at a tender of 2019-expiry bonds.


Latest Previous Daily Change bid close change in 2017 Czech crown 25.8690 25.8750 +0.02% 4.40% Hungary forint 312.3500 312.5300 +0.06% -1.13% Polish zloty 4.3100 4.3109 +0.02% 2.18% Romanian leu 4.5780 4.5773 -0.02% -0.94% Croatian kuna 7.4990 7.5073 +0.11% 0.75% Serbian dinar 119.1500 119.2200 +0.06% 3.52% Note: daily calculated previous close at 1800 CET change from


Latest Previous Daily Change close change in 2017 Prague 1059.92 1058.06 +0.18% +15.01% Budapest 38028.65 37941.82 +0.23% +18.83% Warsaw 2487.02 2479.46 +0.30% +27.68% Bucharest 8006.11 7984.32 +0.27% +13.00% Ljubljana 804.68 799.73 +0.62% +12.14% Zagreb 1809.21 1813.27 -0.22% -9.31% Belgrade 724.55 726.08 -0.21% +1.00% Sofia 680.07 679.50 +0.08% +15.97%


Yield Yield Spread Daily (bid) change vs Bund change in Czech Republic spread 2-year 0.29 -0.08 +100bps -7bps 5-year 0.496 -0.039 +077bps -3bps 10-year 1.351 0.009 +090bps +2bps


2-year 1.775 -0.009 +248bps +0bps 5-year 2.765 -0.009 +304bps +0bps 10-year 3.471 -0.024 +302bps -1bps FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M interbank Czech Rep <PR 0.75 0.92 1.04 0


Hungary <BU 0.09 0.14 0.2 0.03


Poland <WI 1.78 1.8375 1.905 1.73


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

(Reporting by Sandor Peto, editing by Louise Heavens)