CEE MARKETS 3-Romania struggles to sell debt, FX mixed

                                
 * Currencies, bonds mixed as markets eye data, earnings
                                
 * Romania sells less debt than planned at higher yield
                                
 * Hungary's IMF review, Poland bond auction due on Wed
                                
 
 (Adds Romanian debt tender, updates market moves)
                                
 By Sandor Peto and Sam Cage
                                
 BUDAPEST/BUCHAREST, July 12 (Reuters) - Central European
currencies and bonds were mixed on Monday as investors assessed
the speed of economic recovery across the region and awaited a
slew of economic data due this week.
                                
 Inflation ground to a halt across emerging Europe in June,
data showed on Monday, and analysts said central bank interest
rates could remain low in the mid-term. [ID:nLDE66B0BX]
                                
 Romania continued to struggle to drum up interest in its
debt, selling 89 million lei ($27 million) in one-year bills, a
fraction of what it had planned and at a higher yield, of 6.99
percent, than at a previous tender. [ID:nBUC003735]
                                
 It indicated yields could head yet higher and break a
self-imposed cap of 7 percent, analysts said.
                                
 The Romanian leu <EURRON=> was the worst performing major
currency in the region, dipping 0.3 percent against the euro by
1348 GMT, followed by the Czech crown <EURCZK=>, which shed 0.2
percent.
                                
 The Hungarian forint <EURHUF=> rose 0.4 percent and the
Polish zloty <EURPLN=> was 0.2 percent higher.
                                
 The International Monetary Fund (IMF) continues its review
of Hungary's fiscal performance this week, the first since the
new centre-right government took power in May. Investors are
keen to see if the government gets the IMF's blessing for its
handling of the economy.
                                
 "We await news on all sorts of data coming up this week,
both here and overseas, and perhaps something about the IMF's
review," a Budapest-based currency dealer said. 
                                
 
                                
 STOCKS, BONDS MIXED 
                                
 The region's main stock indices were mixed, with Romanian
stocks <.BETI> easing 2.4 percent, while Budapest shares <.BUX>
-- strong performers in the past two weeks -- were nearly flat,
giving up 0.2 percent, and the Warsaw bourse <.WIG> rose 1.2
percent.
                                
 Hungarian government bonds continued to retreat from 3-5
week highs hit last Thursday. Yields rose by 5-10 basis points.
                                
 "Looking ahead, we will have bond auctions on Thursday
<HUISSUE> and bonds should weaken due to the supply. But if the
stronger forint triggers interest, the bonds might be bought up
(at the auctions)," one trader said, adding though that market
turnover remained thin.
                                
 Yields on Polish bonds were relatively stable ahead of a
five-year bond tender due on Wednesday, which traders said could
set market direction.
                                
 Czech bonds were quiet, with the yield on a two-year bond
quoted up around 9 bps in illiquid trade.
                                
 Inflation was stable in June, adding to expectations
interest rates will stay at current record lows for the rest of
the year. Analysts expect this to give a boost to shorter-dated
bonds.
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2010 
Czech crown      <EURCZK=>   25.327   25.29   -0.15%   +3.91%
Polish zloty     <EURPLN=>   4.061    4.069   +0.2%    +1.06%
Hungarian forint <EURHUF=>   278.23   279.28  +0.38%   -2.83%
Croatian kuna    <EURHRK=>   7.213    7.181   -0.44%   +1.33%
Romanian leu     <EURRON=>   4.247    4.233   -0.33%   -0.23%
Serbian dinar    <EURRSD=>   104.12   103.727 -0.38%   -7.91%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR   +10 basis points to  118bps over bmk*
7-yr T-bond   CZ7YT=RR   +3 basis points to  +135bps over bmk*
10-yr T-bond   CZ9YT=RR   +6 basis points to  +144bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR   +3 basis points to  +398bps over bmk*
5-yr T-bond   PL5YT=RR   +5 basis points to  +377bps over bmk*
10-yr T-bond PL10YT=RR   +2 basis points to  +320bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR   +10 basis points to  +601bps over bmk*
5-yr T-bond   HU5YT=RR   +10 basis points to  +575bps over bmk*
10-yr T-bond   HU10YT=RR +14 basis points to  +485bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1548 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
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 (Additional reporting by Marton Dunai in Budapest and Reuters
bureaus; Editing by Susan Fenton)