CEE MARKETS 4-FX mixed, leu falls amid coalition talks

                                
 (Recasts with new comments, prices.)
                                
 By Dagmara Leszkowicz and Sandor Peto
                                
 WARSAW/BUDAPEST, Dec 9 (Reuters) - Romania's leu fell to a
one-month low on Tuesday amid political uncertainty, while
interest rate cut expectations weakened Poland's zloty to below a
key level at 3.90 to the euro.
                                
 Other Central European currencies firmed or stayed flat.
                                
 Traders said they saw no significant change in the global
appetite for risk as equities in the region and in developed
markets were mixed. Currency turnover remained moderate.
                                
 Romania's leu <EURRON=> shed 0.49 percent and was bid at
3.888 at 1513 GMT, pushed down by commercial orders in low
volumes, while foreign investors stayed on the sidelines.
                                
 The market was split as coalition talks after Romania's
inconclusive parliamentary election continued on Tuesday, with
the leftist Social Democrats and centrist Democrat-Liberals
moving closer to forming a coalition government [ID:nL8196717].
                                
 "The Social Democrats are not well received by markets," one
dealer said.
                                
 But some analysts had a different view.
                                
 "The news is positive as the move came faster than expected
and since the two parties have 70 percent of seats," ING
analysts said in a research note.
                                
 In Poland currency volatility decreased, but the zloty
<EURPLN=> eased by 0.1 percent to 3.912 to the euro, while
government bonds firmed due to expectations for a cut in the
Polish central bank key rate of 5.75 percent later this month.
                                
 The forint<EURHUF=> firmed 0.36 percent to 262.41 to the
euro even though Hungary's central bank surprised on Monday by
cutting its base rate by 50 basis points to 10.5 percent, and
another rate cut is expected before the end of the year.
                                
 "Other banks in the world also cut rates and the NBH
(central bank) cut its own rates just in the right moment," one
Budapest-based dealer said. "The forint can stay steady but if
the NBH continues to cut, it may weaken."
                                
 Serbia's dinar<EURRSD=> was bid at 83.709 against the euro,
firmer by 0.39 percent, extending the strong gains posted since
last Thursday when the central bank announced measures to boost
euro liquidity.
                                
 The Czech crown moved in a narrow range between 25.670 and
25.730 versus the euro <EURCZK=> in quiet trade, unaffected by
local news, including comments by a central bank board member.
                                
 Robert Holman reiterated that he expected a reduction in
interest rates likely at the bank's next meeting on Dec. 17.
                                
 A Prague-based dealer said the crown's movements were
determined by news from abroad rather than domestic macro data.
                                
 "Trading range is thin, liquidity is low... We are now
looking at what capital flows from the U.S. will do," the dealer
said. 
 ----------------------MARKET SNAPSHOT-------------------------
 Currency                    Latest   Previous Local    Local
                                
                                   close    currency currency
                                
                                           change   change
                                
                                           today    in 2008 
 Czech crown      <EURCZK=>   25.697    25.74   +0.17%    +3.02%
 Polish zloty     <EURPLN=>    3.912     3.908  -0.1%     -8.65%
 Hungarian forint <EURHUF=>  262.41    263.35   +0.36%    -3.78%
 Croatian kuna    <EURHRK=>    7.186     7.19   +0.06%    +1.92%
 Romanian leu     <EURRON=>    3.888     3.869  -0.49%    -8.6%
 Serbian dinar    <EURRSD=>   83.709    84.034  +0.39%    -6.28%
                                
 Yield Spreads
 Czech treasury bonds <0#CZBMK=>
 3-yr T-bond   CZ3YT=RR   +10 basis points to  155bps over bmk*
 5-yr T-bond   CZ5YT=RR    -8 basis points to  +133bps over bmk*
 10-yr T-bond   CZ9YT=RR   -3 basis points to  +111bps over bmk*
 Polish treasury bonds <0#PLBMK=>
 2-yr T-bond   PL2YT=RR   -2 basis points to  +319bps over bmk*
 5-yr T-bond   PL5YT=RR   -25 basis points to  +260bps over bmk*
 10-yr T-bond PL10YT=RR   -19 basis points to  +238bps over bmk*
 Hungarian treasury bonds <0#HUBMK=>
 3-yr T-bond   HU3YT=RR   -49 basis points to  +738bps over bmk*
 5-yr T-bond   HU5YT=RR   -66 basis points to  +684bps over bmk*
 10-yr T-bond   HU10YT=RR  -3 basis points to  +502bps over bmk*
 *Benchmark is German bond equivalent.
 All data taken from Reuters at 1613 CET.
 Currency percent change calculated from the daily domestic 
close at 1500 GMT.
                                
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 (Reporting by Reuters bureaus, Writing by Dagmara
Leszkowicz/Sandor Peto; Editing by Ruth Pitchford/Victoria Main)