CEE MARKETS 2- Zloty off 1-mth high, BGK bank still on market

                                
 * Currencies little changed in thin year-end trade
                                
 * Zloty touch off one-month highs, BGK bank still in market
                                
 * Polish finmin to publish Q1 debt supply at 1100 GMT
                                
 
                                
(Adds fixed income)
                                
 WARSAW, Dec 30 (Reuters) - The Polish zloty briefly touched
a one-month high on Thursday, lifted mainly by state-owned BGK
bank's continued selling of euros in the spot market, while
other east European currencies were broadly steady in thin
year-end trade.
                                
 Market sources have told Reuters over the past week that
Poland's state-owned BGK bank was offering euros in the market.
                                
 "BGK is likely to rule in the market until the end of the
year," said one Warsaw-based dealer. "The local support level is
3.96 to the euro."
                                
  By 0928 GMT the zloty was 0.2 percent weaker against the
euro and a touch off a previous high of 3.957 to the euro in
thin trade. 
                                
 BGK can convert euros into zlotys on its own behalf or on 
behalf of the finance ministry, which needs to exchange European
Union funds. But the bank's presence in the market has a
psychological effect, dealers say.
                                
 Traders expect the ministry to exchange euros through the
market as part of efforts to avoid breaching key public debt
levels at the end of this year. 
                                
 Under Polish law, if public debt breaches 55 percent of
gross domestic product (GDP), the government is required to make
painful spending cuts in future years.
                                
 The Czech crown <EURCZK=> and Romania's leu <EURRON=> were
virtually flat, while Hungary's forint <EURHUF=> was 0.3 percent
weaker.
                                
 The zloty has firmed some 3.0 percent since the end of
November and is almost 4 percent up since the start of the year.
The Czech crown <EURCZK=> is also a gainer this year, up some
4.4 percent mainly on the back of the country's solid economic
fundamentals and relatively healthy fiscal outlook.
                                
 By contrast, Hungary's forint <EURHUF=> and Romania's leu
<EURRON=> have respectively lost some 3.2 percent and 1.5
percent of their value in 2010 amid political tensions and
uncertainty over their fiscal outlooks.
                                
 Data from the National Bank of Hungary showed the country's
current account surplus stood at 477 million euros in the third
quarter, more than analysts' forecasts. [ID:nLDE6BT06X]
                                
 The Polish bond market was quiet on Thursday, with dealers
awaiting debt supply details for the first quarter of 2011 at
1100 GMT.
                                
 In Hungary, the government's debt agency will offer 45
billion forints in bonds, with results expected at 1030 GMT.
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2010 
Czech crown      <EURCZK=>  25.304   25.31   +0.02%    +4.01%
Polish zloty     <EURPLN=>   3.969    3.962  -0.18%    +3.4%
Hungarian forint <EURHUF=> 279.81   279.09   -0.26%    -3.38%
Croatian kuna    <EURHRK=>   7.382    7.383  +0.01%    -0.99%
Romanian leu     <EURRON=>   4.297    4.298  +0.02%    -1.39%
Serbian dinar    <EURRSD=> 105.55   105.38   -0.16%    -9.16%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR    -14 basis points to  85bps over bmk*
7-yr T-bond   CZ7YT=RR    -1 basis points to  +98bps over bmk*
10-yr T-bond   CZ9YT=RR   +2 basis points to  +99bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR   +4 basis points to  +385bps over bmk*
5-yr T-bond   PL5YT=RR   +7 basis points to  +363bps over bmk*
10-yr T-bond PL10YT=RR   +4 basis points to  +302bps over bmk*
The P
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR   +2 basis points to  +669bps over bmk*
5-yr T-bond   HU5YT=RR   +5 basis points to  +600bps over bmk*
10-yr T-bond   HU10YT=RR +4 basis points to  +502bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1028 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)