CEE MARKETS 3-Zloty leads gains as markets rebound from losses

                                
  * ERM 2 talk in Bulgaria, Poland improves regional mood
                                
 * Hungary sharply raises bond auction amounts 
                                
 * Moody's maintains Romania outlook at stable
                                
 
 (Adds bonds, comments, updates markets)
                                
 By Marius Zaharia and Marton Dunai
                                
 BUCHAREST/BUDAPEST, July 9 (Reuters) - Central and eastern
European currencies stabilised at stronger levels on Thursday,
boosted by ERM2 comments from Poland and Bulgaria, while
Hungary's bonds extended gains on improved sentiment.
                                
 Simeon Djankov, expected to become Bulgaria's finance
minister after the election over the weekend, said the Balkan
state will apply for ERM-2 entry in November. [ID:nL8636071]
                                
 In Poland, Finance Minister Jacek Rostowski was quoted as
saying the zloty may be stable enough to enter the ERM-2 in the
second half of 2009. [ID:nL9356698]
                                
 But he did not say when Poland would actually join the euro
zone's waiting room, which limited impact on the market.
                                
 "We're not convinced that either (ERM2 entry) will occur, on
fiscal grounds in Poland and balance of payments grounds in
Bulgaria, though at the margin (we) do see CEE EMU newsflow
improving," UniCredit said in a note.
                                
 By 1434 GMT, the zloty had risen 1 percent, Hungary's forint
and the Czech crown each had gained 0.4 percent, while the
Romanian leu was steady.
                                
 One dealer in Bucharest said Poland's successful $2 billion
10-year eurobond issue this week, oversubscribed fourfold, is
finally being reflected in the currency market on the back of a
pickup in risk appetite, helping the zloty.
                                
 Analysts and another dealer said the Polish unit received
extra support from a Scandinavian construction company working
on a major highway in Poland, which sold some euros on Thursday.
                                
 Stock markets also ticked up, following a general rally in
Europe, and bonds were stronger as well.
                                
 Hungarian bond yields dropped about 30 basis points across
the curve and the debt management agency AKK announced it would
up the offered amount at next week's auctions to 55 billion
forints [nL9667265].
                                
 
                                
 DATA DO NOT SURPRISE
                                
 Data on Thursday did not immediately impact currencies as
they were broadly in line with market expectations, although
they indicated recession is still overhanging central and
eastern Europe.
                                
 Czech June inflation rose 1.2 percent on the year
[ID:nPRA002653] and the country's June unemployment rose to 8
percent [ID:nPRG001507].
                                
 "The situation remains quite serious," said Komercni Banka's
Jan Vejmelek. "Unemployment will go higher for another year."
                                
 Romanian industry output edged down on the month in May
[ID:nBUC001408] while Moody's maintained a stable outlook for
the country. Hungary posted a bigger than expected trade surplus
[ID:nBUD003046].
                                
 Currencies came under pressure earlier this week and on
Wednesday they posted sharp losses after breaking technical
support levels.
                                
 All units are seen gaining over a 12-month horizon, with the
Polish zloty leading the way.
----------------------MARKET SNAPSHOT-------------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2009 
Czech crown      <EURCZK=>   25.955  26.061   +0.41%   +3.07%
Polish zloty     <EURPLN=>   4.374    4.418   +1.01%   -5.92%
Hungarian forint <EURHUF=>   275.58  276.75   +0.42%   -4.37%
Croatian kuna    <EURHRK=>   7.347    7.337   -0.14%   +0.24%
Romanian leu     <EURRON=>   4.212    4.211   -0.02%   -4.69%
Serbian dinar    <EURRSD=>   93.436  92.406   -1.1%    -4.23%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR    -5 basis points to  161bps over bmk*
4-yr T-bond   CZ4YT=RR    -5 basis points to  +178bps over bmk*
8-yr T-bond   CZ8YT=RR   +4 basis points to  +313bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR    -9 basis points to  +401bps over bmk*
5-yr T-bond   PL5YT=RR    -5 basis points to  +318bps over bmk*
10-yr T-bond PL10YT=RR    -5 basis points to  +291bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR    -26 basis points to  +766bps over bmk*
5-yr T-bond   HU5YT=RR    -63 basis points to  +691bps over bmk*
10-yr T-bond   HU10YT=RR  -51 basis points to  +570bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1634 CET.
Currency percent change calculated from the daily domestic 
close at 1500 GMT.
                                
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 (Reporting by Reuters bureaux, writing by Marton Dunai and
Marius Zaharia; Editing by Chris Pizzey)