Czech crown opens steady, 30-yr bond sale eyed

PRAGUE, Nov 29 (Reuters) - The Czech crown held steady versus the euro on Wednesday, hugging a narrow range in the run-up to an expected no-change interest rate verdict at the central bank's meeting on Thursday.

The crown traded at 28.006 per euro <0#EURCZK=> by 0905 GMT. The currency has hovered near all-time highs since peaking at a record of 27.875 per euro on Nov. 6.

The crown gained quarter of a percent to 21.250 to the U.S. dollar <CZK=>, having peaked at a lifetime high at around 21.150 at the start of the session. The dollar has weakened broadly on softer data on the U.S. economy [FRX/].

The Czech central bank looks all but certain to keep rates unchanged on Thursday and remain on hold until at least January, as a firm crown tames budding price pressures in the booming economy, a Reuters poll has showed [ID:nL24299086].

Third-quarter wage data released on Wednesday morning helped reinforce the market's view the central bank is unlikely to rush with an interest rate increase despite this year's revival in household spending, fed also by consumer borrowing.

"Wage growth does nothing to undermine competitiveness of the Czech economy, nor does it fuel any inflationary pressures. So there is no reason for any CNB (central bank) action," said Petr Dufek, analyst at CSOB bank.

In the local currency debt market, investors were preparing for a debut sale of a new 30-year benchmark government bond, the longest-maturity paper to be issued by any of the four biggest European Union members in central Europe [ID:nL02508686].

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

"We think (this) should put additional pressure for the crown curve to steepen, particularly if the auction does not go well," analysts at JPMorgan Chase Bank in London said in a recent report.

The Czech yield curve has steepened over the past few weeks, with the spread between 2-year and 10-year interest rate swaps <CZKIRS> -- a closely-watched gauge of the curve's slope -- widening to more than 50 basis points from a multi-year low of about 40 basis points in late September.

----------------- MARKET SNAPSHOT AT 0905 GMT ----------------- Crown/euro <EURCZK=> last deals at 28.006 (+0.03 pct) Crown/dollar <CZK=> at 21.248 bid (+0.21 pct)

5-year yield due Oct 2010 <CZ5YT=RR> 3.42 pct bid (flat) 10-year yield due Jan 2016 <CZ10YT=RR> 3.70 pct bid (flat)

5-yr CZK/EUR mid yield spread <DE114147=> -25 bps (vs -25) 10-yr CZK/EUR mid yield spread <DE113529=> 1 bps (vs 1)

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

((Reporting by Marek Petrus; Editing by Chris Pizzey; 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))

- For previous updates on Czech currency moves click on [CZK/]

--------ECONOMIC DATA RELEASES (double click to access)-------- LIVE Czech economic data releases <ECONCZ> INSTANT VIEWs on Czech economic data [CZ/INSTANT] Factors To Watch in Czech Republic [nCZECH]

---------------------------RELATED NEWS------------------------ Czech FX outlook poll [CZK/POLL] Emerging forex [EMRG/FRX] Hungary market report [FT/] Poland market report [PLN/] All emerging markets news [EMRG] CEE indicators [CONV/DIARY] All east Europe news [EEU] E.Europe equities [.CEE] TOP NEWS -- Emerging markets [TOP/EMRG] TOP NEWS -- Convergence watch [TOP/EAST] Czech indicators [CZ/ECI] Hungary indicators [HU/ECI] Slovak indicators [SK/ECI] Polish indicators [PL/ECI] --------------------LIVE PRICES & DATA------------------------- Crown Spot Against EUR <EURCZK=> Against USD <CZK=> Czech Bonds <0#CZBMK=> C.Europe Bonds <CEEBONDS> Crown FRAs <CZKFRA=TTKL> Central Bank Fixings <CNB02> Contrib. Cross Rates <CZKX1=> Czech Central Bank <CNB01> -------------------------------------------------------------- HOW TO FIND INFORMATION YOU NEED

|<REUTERS> | <NEWS> | <PHONE/HELP> |

|<EQUITY> | <BONDS>| <MONEY> | <COMMODITY> | <ENERGY> ---------------------------------------------------------------

Keywords: MARKETS CZECH CROWN MORNING