CEE MARKETS 2-FX firms but weaker tone expected to return

                                
 (Adds details, fixed income)
                                
 WARSAW, Nov 13 (Reuters) - The Romanian leu led central
European currencies higher on Thursday, a move which traders
said was possibly because of a Japanese offer to the IMF of up
to $100 billion to help emerging economies.
                                
 Emerging Europe's currencies have been knocked back in the
past month due to investors shunning more risky assets.
                                
 The region's stocks opened weaker on Thursday, with Poland's
WIG20 <.WIG20> losing almost 4 percent and Prague's PX <.PX>
almost one percent. Dealers said a weaker tone in currencies was
also likely to return.
                                
 At 0945 GMT the Polish zloty <EURPLN=> had gained 0.7
percent to 3.75 per euro and the leu <EURRON=> jumped 1.3
percent after three days of falling since Fitch cut the
country's credit rating to below investment grade.
                                
 Hungary's forint <EURHUF=> was up 0.5 percent at 269.5
against the common currency, and the Czech crown <EURCZK=> added
0.7 percent to 25.316.
                                
 "The market just got itself overly bearish, and the flows
aren't there to sustain the movements," a London-based currency
dealer said.
                                
 The dealer added that Japan's offer to the International
Monetary Fund had temporarily helped sentiment in the region but
he said the boost was unlikely to last.
 (For details please double click on [ID:nT198541])
                                
 Some central and eastern European states' high exposure to
foreign credit spooked investors last month, sending Hungary and
Serbia, among others, to seek IMF help.
                                
 The region's export-driven economies have also come under
strain as euro zone demand wanes, while ambitions from some
countries to join the euro have also come into question in the
current market tension.
                                
 In Poland, Prime Minister Donald Tusk said on Wednesday
after talks with the European Central Bank that his plan to
adopt the euro in 2012 would be delayed if the government and
opposition cannot reach agreement on the issue [ID:nLC380821].
                                
 "These comments were quite pessimistic and I expect the
Polish currency may test 'abstract' levels above 3.80 against
the euro," said Ernest Pytlarczyk, head of Financial Markets
Research at BRE bank in Warsaw.
                                
 In other trade the Serbian dinar <EURRSD> was a touch above
Wednesday's close at 84.5 per euro, while Croatian kuna
<EURHRK=> was 0.2 percent higher at 7.124 to the euro.
                                
 "(Croatian) interest rates are quite high, and banks need
the kuna to maintain mandatory reserves, so I see the kuna
firming further next week," said a dealer at a major local bank.
                                
 Bond markets remained steady. "Foreigners are not able to
sell papers to anyone else but the central bank (which holds a
weekly auction where it buys bonds)," a Budapest-based trader
said. "There is no secondary market that we used to have."
                                
 
----------------------MARKET SNAPSHOT-------------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2008 
Czech crown      <EURCZK=>   25.316   25.505  +0.74%   +4.46%
Polish zloty     <EURPLN=>    3.747    3.773  +0.69%   -4.07%
Hungarian forint <EURHUF=>  269.470  270.750  +0.47%   -6.57%
Croatian kuna    <EURHRK=>    7.124    7.140  +0.22%   +2.76%
Romanian leu     <EURRON=>    3.807    3.858  +1.32%   -6.33%
Serbian dinar    <EURRSD=>   84.480   84.590  +0.13%   -7.26%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
3-yr T-bond   CZ3YT=RR   +26 basis points to  148bps over bmk*
5-yr T-bond   CZ5YT=RR    0 basis points to  +134bps over bmk*
10-yr T-bond   CZ9YT=RR    -8 basis points to  +82bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR   +1 basis points to  +423bps over bmk*
5-yr T-bond   PL5YT=RR    -13 basis points to  +358bps over bmk*
10-yr T-bond PL10YT=RR    -10 basis points to  +279bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR   -41 basis points to  +1118bps over bmk*
5-yr T-bond   HU5YT=RR   -54 basis points to  +1043bps over bmk*
10-yr T-bond  HU10YT=RR  +6 basis points to  +661bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 0944 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; editing by David Stamp)