CEE MARKETS-Currencies, stocks rise on U.S. data, Serbian rates seen on hold

    * Fx, stocks firm as U.S. data fuels risk appetite
    * Dinar trades near 20-month high, central bank seen holding
    * Czech crown near strongest levels since 2013
    * Czech central bank data show further rise in fx reserves
in June

    By Sandor Peto
    BUDAPEST, July 10 (Reuters) - Central European currencies
and stocks firmed on Monday as investors bought risky assets
after strong U.S. employment figures for June helped Wall Street
stocks to rise at the end of last week.
    Warsaw led equities gains, with its blue-chip index
rising by two-thirds of a percent by 0826 GMT, driven by an 1.8
percent rise in oil group PKN Orlen.
    The dinar was flat ahead of a meeting of Serbian
monetary policy makers who are expected to keep the region's
highest key central bank interest rate on hold at 4 percent.

    Trading at 120.11 against the euro, the dinar was a shade
off Friday's 20-month highs a tick above the key psychological
line at 120.
    Serbia's central bank has often bought euros in the market
this year to stem dinar gains. But it is unlikely to cut rates
as it wants to maintain investors' interest in dinar-denominated
    While inflation is stable, it observes risks from an
increasingly hawkish tone from the main global central banks,
also underpinned by Friday's robust U.S. employment data,
analysts said.
    "We would project rising resistance for the dinar,"
Raiffeisen analyst Wolfgang Ernst said in a note. 
    "Setbacks could come from domestic topics, such as
uncertainties over the renewal of (Serbia's) IMF deal (which
will expire in early 2018), possible delays in the
privatisation/restructuring of state-owned enterprises, but also
from external side," Ernst added.
     A Reuters poll showed last week that analysts see the dinar
retreating to 124 against the euro in the next 12 months.

    Elsewhere, the Czech crown traded at 26.065 against the
euro, approaching Friday's peak of 26.048, which was its
strongest level since late 2013.
    Its rise has been fuelled by Friday's data which showed 
robust growth in industrial output and retail sales in May,
reflecting the region's robust economic growth.
    The currency has been strengthening since in early April the
 Czech central bank removed a cap which had kept the crown
weaker than 27 for years.
    Before the exit, the bank sold crowns worth tens of billions
of euros in the market to defend the cap, boosting its foreign
currency reserves
    End-June reserve figures released on Monday showed further
rise last month, to 124.89 billion euros from a revised 124.01
billion euros in May, while the bank said it did not sell or buy
any foreign currency in the spot market in May.
    Government bonds were mixed in the region. Poland's 10-year
bond yield fell 6 basis points to 3.3065 percent.
                CEE MARKETS  SNAPSH   AT  1026 CET         
                             Latest  Previo  Daily   Change
                             bid     close   change  in
 Czech crown                 26.065  26.088   +0.09   3.61%
                                  0       0       %  
 Hungary                     307.83  308.03   +0.06   0.32%
 forint                          00      00       %  
 Polish zloty                4.2340  4.2356   +0.04   4.01%
 Romanian leu                4.5690  4.5767   +0.17  -0.74%
 Croatian kuna               7.4100  7.4115   +0.02   1.96%
 Serbian dinar               120.11  120.11   +0.00   2.70%
                                 00      00       %  
 Note: daily    calculated   previo  close   1800          
 change         from         us      at      CET     
                             Latest  Previo  Daily   Change
                                     close   change  in
 Prague                      994.33  992.18   +0.22   +7.89
                                                  %       %
 Budapest                    35629.  35503.   +0.35   +11.3
                                 47      69       %      3%
 Warsaw                      2310.9  2295.8   +0.66   +18.6
                                  7       2       %      4%
 Bucharest                   8074.0  8044.7   +0.36   +13.9
                                  1       9       %      6%
 Ljubljana                   804.98  801.45   +0.44   +12.1
                                                  %      8%
 Zagreb                        0.00  1871.9   +0.00  -100.0
                                          7       %      0%
 Belgrade                    705.63  709.77  -0.58%  -1.64%
 Sofia                       710.29  707.96   +0.33   +21.1
                                                  %      2%
                             Yield   Yield   Spread  Daily
                             (bid)   change  vs      change
                                             Bund    in
 Czech                                               spread
   2-year                      0.05       0   +066b   +1bps
   5-year                     0.179   0.078   +029b   +10bp
                                                 ps       s
   10-year                     1.07       0   +052b   +2bps
   2-year                      1.85   -0.18   +246b  -17bps
   5-year                     2.672  -0.023   +278b   +0bps
   10-year                    3.313  -0.066   +276b   -5bps
                FORWARD      RATE    AGREEMENT             
                             3x6     6x9     9x12    3M
 Czech Rep              <PR    0.46    0.55    0.66       0
 Hungary                <BU    0.21    0.26    0.31    0.15
 Poland                 <WI   1.753    1.78    1.83    1.73
 Note: FRA      are for ask                                
 quotes         prices                               
 (Reporting by Sandor Peto; Editing by Keith Weir)