Czech crown near record highs, bonds await auction

PRAGUE, Nov 20 (Reuters) - The Czech crown held near record highs against the euro and scaled a lifetime high to the dollar on Wednesday morning, as low volatility and a generally benign view of the world economy support inflows into emerging markets.

The crown traded at 27.950 per euro <0#EURCZK=> by 0925 GMT, barely changed from Tuesday's domestic close and not far off a life-time high of 27.875 posted on Nov. 6.

The Czech currency rose on the stronger side of 21.700 to the dollar <CZK=>, breaking a previous record high from August, as some investors closed long dollar positions on global markets before the U.S. Thanksgiving holiday on Thursday.

"The cheap dollar fits the arguments in favour of a delay in an interest rate increase in the Czech Republic into next year," said Ales Michl, analyst at Raiffeisenbank in Prague.

The outlook for steady policy until the year-end has supported Czech debt markets over the past few weeks, and was reinforced by central bank (CNB) board member Robert Holman.

Holman told Reuters in an interview late on Tuesday that the CNB was not very likely to raise interest rates at the Nov. 30 meeting, as inflation has fallen and there is no pressure for additional tightening [nL22899028].

The debt market was awaiting an inaugural auction of the new 3-year benchmark government bond <CZ1001754=> for an indication of domestic investor interest to fund the country's mounting debt pile fed by a burgeoning budget deficit.

Bids in the auction <CNB08> were due by 12:00 p.m. (1100 GMT).

----------------- MARKET SNAPSHOT AT 0930 GMT ----------------- Crown/euro <EURCZK=> last deals at 27.950 (-0.05 pct) Crown/dollar <CZK=> at 21.708 bid (+0.05 pct)

5-year yield due Oct 2010 <CZ5YT=RR> 3.50 pct bid 10-year yield due Jan 2016 <CZ10YT=RR> 3.73 pct bid

5-yr CZK/EUR mid yield spread <DE114147=> -18 bps 10-yr CZK/EUR mid yield spread <DE113529=> 3 bps

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

((Reporting by Marek Petrus; Editing by David Stamp; Reuters Messaging: rm://marek.petrus.reuters.com@reuters.net; e-mail: prague.newsroom@reuters.com or marek.petrus@reuters.com; Tel: +420 224 190 477))

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Keywords: MARKETS CZECH CROWN MORNING