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CEE MARKETS-Zloty extends gain on output surge, shrugs off German worry

* Zloty bucks fx easing on German coalition talks collapse

* Zloty extends gains on strong Polish output, retail figures

* Forint eases, cbank could loosen screws further on Tues

* Crown firms, central bank chief sees 50 pct Dec rate hike odds

(Adds fresh Polish data, Czech central banker comments, Romanian tenders) BUDAPEST/WARSAW, Nov 20 (Reuters) - The zloty clung to its gains on Monday after fresh Polish figures showed a surge in industrial output and retail sales, reflecting robust economic growth in Central Europe. A collapse of coalition talks in Germany limited the zloty's gains early on Monday. Figures released later showed a 12.3 percent annual rise in industrial output in October, exceeding all analyst forecasts, and 8 percent growth in retail sales. The zloty firmed 0.1 percent to 4.2329 against the euro by 1455 GMT, after touching a six-day high at 4.228. Polish government bond yields rose 2-3 basis points in longer maturities. The 2-year yield dropped 2 basis points to 1.4805 percent. "Initially there was some uncertainty around German coalition talks failure, but at the moment zloty is slightly gaining," said Millennium Bank analyst Mateusz Sutowicz. The withdrawal of small center-right party FDP from Germany's coalition talks caused some unease among investors in the European Union's emerging economies. EU political noise is still a force to be reckoned with, said Simon Quijano-Evans, strategist of Legal & General Investment Management in a note. "CEE members of the EU have the most to lose from any increase in 'core-EU' nationalism coupled with Brexit implications for the 2021-27 EU budget," he said, referring to a loss of Britain's contributions after it quits the EU. The forint eased 0.2 percent against the euro to 312.39. Hungary's central bank, one of the most dovish monetary authorities in the world, may launch new measures at its meeting on Tuesday to push long-term market interest rates lower. That could send the forint towards 315 versus the euro, Raiffeisen analyst Wolfgang Ernst said in a note, adding though that the forint could rebound to 310 by the end of the year. The Romanian government managed to sell debt for the first time since Nov. 9 at an auction, after pumping 5.83 billion lei into interbank markets via a repo tender. It rejected all bids at most tenders held since early October as yields surged and demand was scarce due to a liquidity squeeze in leu markets and concerns over fiscal policy which is boosting the budget deficit and inflation. The leu eased 0.1 percent. The crown stood firmer by 0.1 percent at 25.558 versus the euro, after Czech central bank governor Jiri Rusnok said he saw a 50 percent chance the bank will raise interest rates again in December after hikes in August and November.

Warsaw's stock index firmed 0.9 percent, driven by a 3.2 percent rise by the stocks of shoes retailer CCC .

CEE MARKETS SNAPSH AT 1555 CET

OT CURRENCIES

Latest Previo Daily Change

us

bid close change in

2017

Czech crown 25.558 25.594 +0.14 5.67% 0 5 % Hungary 312.39 311.84 -0.17% -1.14% forint 00 50 Polish zloty 4.2329 4.2374 +0.11 4.04%

%

Romanian leu 4.6460 4.6417 -0.09% -2.39% Croatian 7.5635 7.5675 +0.05 -0.11% kuna % Serbian 118.51 118.42 -0.08% 4.08% 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 1053.4 1054.7 -0.12% +14.3 6 5 1% Budapest 39258. 39279. -0.05% +22.6 93 75 7% Warsaw 2465.2 2443.8 +0.87 +26.5 1 3 % 6% Bucharest 7823.6 7772.1 +0.66 +10.4 8 4 % 3% Ljubljana 787.75 792.06 -0.54% +9.78

%

Zagreb 1847.0 1853.0 -0.33% -7.41% 5 8 Belgrade 733.93 735.73 -0.24% +2.31

%

Sofia 669.14 668.87 +0.04 +14.1 % 0%

BONDS

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

Republic

2-year 0.414 0.049 +113b +6bps

ps

5-year 0.975 0.033 +132b +3bps

ps

10-year 1.806 0.076 +145b +8bps

ps Poland

2-year 1.597 0.001 +231b +1bps

ps

5-year 2.647 0.023 +300b +2bps

ps

10-year 3.442 0.036 +308b +4bps

ps

FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interb ank

Czech Rep <PR 1.06 1.21 1.34 0

IBOR=>

Hungary <BU 0.08 0.09 0.14 0.03

BOR=>

Poland <WI 1.77 1.83 1.93 1.73

BOR=>

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

(Additional reporting by Radu Marinas in Bucharest/ Jason Hovet in Prague; Editing by Alison Williams)