CEE MARKETS 2-FX mixed, but sentiment better after G20

                                
 * FX mixed after G20 but sentiment better
                                
 * EM may be biggest G20 beneficiary with IMF funds
                                
 * CDSs narrowed significantly
                                
 
                                
(Adds fixed income, detail)
                                
 By Dagmara Leszkowicz
                                
 WARSAW, April 3 (Reuters) - Central European currencies were
mixed on Friday with the Polish zloty losing a half of
percentage point, but the market mood was brighter overall after
the G20's decision to triple the IMF's resources.
                                
 The G20 summit on Thursday added $500 billion to the
International Monetary Fund's firepower for a total of $750
billion, and Europe's emerging markets are a potential 
beneficiary. [ID:nL2949936]
                                
 After the G20 declarations, currencies in the region surged
on Thursday, with the Polish zloty <EURPLN=> touching its key
level around 4.42 and Hungarian forint <EURHUF=> firming 3.7
percent against the euro to 293.
                                
 Better appetite for more riskier assets was also reflected
in credit default swaps (CDS) where Hungary, Czech Republic,
Poland and Romania's CDS narrowed by 27-37 basis points on
Thursday and Romania's CDS hit narrowest in five months.
                                
 Stocks in the region continued to climb on Friday, with
Warsaw WIG20 <.WIG20> gaining almost 3 percent and Budapest's
BUX <.BUX> rising 2.4 percent.
                                
 "Clearly emerging markets as a whole come out as the winner
of the G20 meeting, not only because more funds will be
available," analysts at Cheuvreux wrote in a morning note.
                                
 "It is also because it highlights how important EM has
become for the working of the global economy, and emphasises the
importance that leaders attach to a 'peaceful' global
development, rejecting nationalism and protectionism."
                                
 At 0954 GMT the Polish zloty traded at 4.45 per euro and
Hungary's forint <EURHUF=> was also a touch weaker, but the
Czech crown <EURCZK=> and Romanian leu <EURRON=> were slightly
above Thursday levels.
                                
 "I expect today we may have a small correction as the market
analyses what has been said and set on the G20 summit, but the
sentiment overall is better and currencies are likely to stay
relatively strong," one Warsaw-based dealer said.
                                
 On the domestic side in Hungary the ruling Socialists and
opposition Free Democrats digest deep spending cuts proposed by
prime minister designate Gordon Bajnai on Thursday to lead the
country out of crisis and prepare for weekend congresses where
they are expected to back Bajnai. [ID:nL2944624] 
                                
 "The G20 improved sentiment substantially, but the
fundamentals of the Hungarian economy remain disastrous," one
Budapest-based dealer said.
                                
"The Bajnai package is enough for firefighting only, it does
not bring any structural (economic) change and let's not even
talk about its support from voters."
----------------------MARKET SNAPSHOT-------------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2009 
Czech crown      <EURCZK=>   26.615    26.635 +0.08%    +0.52%
Polish zloty     <EURPLN=>   4.447     4.422  -0.56%    -7.47%
Hungarian forint <EURHUF=>   294.98    294.5  -0.16%    -10.65%
Croatian kuna    <EURHRK=>   7.426     7.453  +0.36%    -0.82%
Romanian leu     <EURRON=>   4.195     4.199  +0.1%     -4.31%
Serbian dinar    <EURRSD=>   94.069    94.248 +0.19%    -4.88%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR    -3 basis points to  215bps over bmk*
4-yr T-bond   CZ4YT=RR    -17 basis points to  +244bps over bmk*
8-yr T-bond   CZ8YT=RR    -5 basis points to  +314bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR    -7 basis points to  +405bps over bmk*
5-yr T-bond   PL5YT=RR    -2 basis points to  +354bps over bmk*
10-yr T-bond PL10YT=RR    -1 basis points to  +307bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR    -26 basis points to  +1013bps over
bmk*
5-yr T-bond   HU5YT=RR    -60 basis points to  +941bps over bmk*
10-yr T-bond   HU10YT=RR  -47 basis points to  +824bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 0954 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
                                
 
                                
 For related news and prices, click on the codes in brackets:
All emerging market news [EMRG]
Spot FX rates
Eastern Europe spot FX <EEFX=>    Middle East spot FX <MEFX=>
Asia spot FX <ASIAFX=>       Latin America spot FX <LATAMFX=>
Other news and reports  
World central bank news [CEN]  Economic Data Guide <ECONGUIDE> 
Official rates [GLOBAL/INT]  Emerging Diary [EMRG/DIARY] 
Top events [M/DIARY]  Diaries [DIARY] Diaries Index [IND/DIARY]

                                
  (Reporting by Reuters bureaus, Writing by Dagmara
Leszkowicz)