Czech CZK steady against euro as mkt consolidates

...Tuesday, little changed from the previous session as investors consolidate positions.

At 0727 GMT, the crown traded at 28.59 to the euro .

"For the time being, we don't expect the crown's strong resistance level of 28.57/65 to be broken; rather, we should see consolidation," Komercni Banka said in a morning report to investors.

Dealers said the market took comments by Czech central bank Vice-Governor Miroslav Singer to mean that the bank may consider raising interest rates again soon after hiking in May for the first time in eight months to prevent inflation from flaring up.

Singer told Reuters on Monday: "The assumption about a rise (in interest rates) is logical when the economy is running at full steam ahead".

The CNB board is due to review interest rates next on June 28, at a meeting which Singer said he would most likely be unable to attend because of a business trip.

The CNB's policy rate stands at 2.75 percent, its highest in more than four years, after the quarter percentage point rise in May. ----------------- MARKET SNAPSHOT AT 0727 GMT ----------------- Crown/euro last deals at 28.586 (-0.02 pct) Crown/dollar at 21.286 bid (0.09 pct)

5-year yield due Oct 2010 3.94 pct bid (-5 bps) 10-year yield due Jan 2016 4.45 pct bid (1 bps)

5-yr CZK/EUR mid yield spread -66 bps (vs -61) 10-yr CZK/EUR mid yield spread -21 bps (vs -23)

Current levels versus prior domestic close at 1500 GMT ---------------------------------------------------------------