CEE MARKETS 3-FX, bonds little changed as mkts eye Fed

                                
 * Romania holds rates, Czech cbank seen doing same
                                
 * Forint a touch weaker as market digests budget plans
                                
 * Markets await Fed decision; zloty, forint seen sensitive
                                
 
                                
(Writes through, updates markets)
                                
 By Dagmara Leszkowicz and Marton Dunai
                                
 WARSAW/BUDAPEST, Nov 2 (Reuters) - Emerging European assets
were flat on Tuesday, little affected by concerns about fiscal
policy in Hungary and Romania as investors held fire ahead of
likely monetary stimulus moves from the U.S. Federal Reserve.
                                
 Romania's leu <EURRON=> dipped a third of a percent after
the central bank held its key interest rate, with inflation
caused by a sales tax hike leaving limited scope for rate cuts
to aid sluggish growth. [ID:nLDE6A10ZN]
                                
 The Romanian national bank has not moved from record low
rates since May. The government raised value added tax by 5
percentage points in July, trying to cut its budget gap and keep
an international loan programme on track.
                                
 The Hungarian forint <EURHUF=> was off 0.1 percent against
the euro, as was the Czech crown. The Polish zloty <EURPLN=> was
0.4 percent stronger in thin trading.
                                
 The forint shrugged off policy concerns, trading near
four-week highs on the first workday after the government tabled
its 2011 budget, which targets a deficit below 3 percent of GDP
but has raised concerns over longer term fiscal sustainability,
according to analysts. [ID:nLDE6A01N2]
                                
 "The long-term story is horribly bearish," a Budapest-based
dealer said. "Investors remain unconvinced... Spending-side
measures lack anything that resembles a reform."
                                
 The government said it sees growth picking up to 5 percent
by 2013, and plans further cuts in social security taxes.
                                
 The central bank kept rates flat last week in Hungary, as
well as in Poland, and the same is expected from the Czech
National Bank on Thursday. [ID:nLDE6A10GR]
                                
 Pressure on Prague to hike rates remains low as the
inflation background is benign and the crown is robust.
[ID:nLDE6A10GR] The currency is by far the best performing in
the region so far this year.
                                
 
                                
 BONDS LITTLE MOVED, EYE FED
                                
 Government bond markets were little moved, with yields up
one basis point in Poland and down a similar amount in Hungary.
                                
 Poland's finance ministry said consumer prices likely grew
by an annual 2.9 percent last month, faster than the 2.5 percent
pace reported for September. Central bank policymakers said the
rise could be a one-off effect. [ID:nLDE6A10SM]
                                
 Dealers said markets were eyeing monetary stimulus expected
to emerge from the Fed's two-day meeting ending on Wednesday,
with Hungary's forint and Poland's zloty the most sensitive to
that impetus.
                                
 "The decision itself is already priced in, the key question
now is its scope," said Raiffeisen analyst Dorota Strauch. "If
it is bigger than expected, the region may gain further as risk
appetite would likely increase."

--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2010 
Czech crown      <EURCZK=>  24.509   24.475   -0.14%   +7.38%
Polish zloty     <EURPLN=>    3.95    3.966   +0.41%   +3.9%
Hungarian forint <EURHUF=>  270.94    270.7   -0.09%   -0.22%
Croatian kuna    <EURHRK=>   7.343    7.345   +0.03%   -0.46%
Romanian leu     <EURRON=>   4.289    4.276   -0.3%     -1.2%
Serbian dinar    <EURRSD=>  107.56   107.29   -0.25%   -10.86%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR   +1 basis points to   +69bps over bmk*
7-yr T-bond   CZ7YT=RR   +3 basis points to  +102bps over bmk*
10-yr Tbond   CZ9YT=RR   +3 basis points to  +106bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR   -1 basis points to  +375bps over bmk*
5-yr T-bond   PL5YT=RR   +4 basis points to  +357bps over bmk*
10-yr T-bond PL10YT=RR   +5 basis points to  +323bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR    -3 basis points to  +540bps over bmk*
5-yr T-bond   HU5YT=RR    -1 basis points to  +514bps over bmk*
10-yr T-bond  HU10YT=RR   +3 basis points to  +455bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1523 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.

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(Reporting by Reuters bureaus, writing by Dagmara Leszkowicz,
editing by Catherine Evans, John Stonestreet)