* Assets rebound as US yield rally loses steam * Hungarian bond auction could draw strong demand-trader * ECB worry on economy could weaken currencies-analysts By Sandor Peto BUDAPEST, April 26 (Reuters) - Central European government bonds and currencies regained some ground as a rally in U.S. Treasuries yields and the dollar lost steam, ahead of an expected decision by the European Central Bank to keep policy unchanged at its monetary meeting on Thursday. Regional currencies and bonds hit multi-week lows and equities have weakened in the past few days as the U.S. 10-year yield reached four-year highs and the dollar firmed. Poland's 10-year government bond yield dropped four basis points to 3.078 percent on Thursday and its Romanian peer was bid lower by 4 basis points. Hungarian yields dropped 1-2 basis points ahead of the government's bi-weekly auctions, with 10-year papers trading at 2.55 percent. The Hungarian central bank's first comments since Prime Minister Viktor Orban's government party Fidesz got re-elected on April 8 confirmed that no change is expected in ultra-loose monetary policy, one Budapest-based fixed income trader said. Deputy Governor Marton Nagy told Reuters that the bank was relaxed about domestic inflation trends and was unlikely to start tightening up its easy monetary policy before the ECB begins raising rates. "It is more likely that the NBH will take any steps only after the ECB moves," he said. The trader said the government was likely to sell bonds at the auction at the current or even lower yield levels after a rise in yields driven by U.S. Treasuries. "Foreigners have no reason to sell. Short-term yields are near zero... and they lengthen their portfolio maturity if they can," the trader said. The ECB is unlikely to stir markets, although any remarks showing worry over a recent slowdown in European economies could weaken the euro against the dollar, market participants said. Central Europe's main currencies eased in tandem with the dollar's global gains in the past days, but the real cause of their weakening was the rise in U.S. debt yields, one Budapest-based currency dealer said. "A further rise in dollar yields could weaken the forint further, but as I can see that does not continue," the dealer said. The forint was flat at 313.25 against the euro at 0808 GMT, still near the seven-week lows it set at 313.55 on Wednesday. The Czech crown and the zloty rebounded and gained about 0.1 percent. Remarks from the ECB concerning recent poor economic data "could push EURUSD down and stronger dollar might still weigh on the zloty," Bank Zachodni WBK analysts said in a note. Regional equity indices mostly firmed. Bucharest's index, which has been buoyed by lucrative dividends, hit a new 10-year high. Czech broadcaster CME's shares gained more than 4 percent after it announced a new financing deal and a rise in core profits. CEE SNAPSHOT AT MARKETS 1008 CET CURRENCI ES Latest Previous Daily Change bid close change in 2018 Czech <EURCZK= 25.4300 25.4600 +0.12% +0.44% crown > Hungary <EURHUF= 313.2500 313.2100 -0.01% -0.75% forint > Polish <EURPLN= 4.2316 4.2340 +0.06% -1.31% zloty > Romanian <EURRON= 4.6515 4.6475 -0.09% +0.61% leu > Croatian <EURHRK= 7.4220 7.4185 -0.05% +0.11% kuna > Serbian <EURRSD= 118.0400 118.1900 +0.13% +0.39% dinar > Note: calculated from 1800 CET daily change Latest Previous Daily Change close change in 2018 Prague 1123.83 1121.670 +0.19% +4.24% 0 Budapest 37973.76 38049.97 -0.20% -3.56% Warsaw 2264.26 2257.00 +0.32% -8.00% Bucharest 9028.04 9006.10 +0.24% +16.43% Ljubljana <.SBITOP 845.63 843.95 +0.20% +4.87% > Zagreb 1789.14 1785.79 +0.19% -2.92% Belgrade <.BELEX1 745.63 746.63 -0.13% -1.86% 5> Sofia 661.69 663.11 -0.21% -2.33% BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year <CZ2YT=R 0.7980 0.0350 +134bps +4bps R> 5-year <CZ5YT=R 1.2270 0.0190 +124bps +3bps R> 10-year <CZ10YT= 1.7620 -0.0330 +115bps -1bps RR> Poland 2-year <PL2YT=R 1.5240 -0.0080 +207bps -1bps R> 5-year <PL5YT=R 2.3830 -0.0450 +239bps -4bps R> 10-year <PL10YT= 3.0620 -0.0400 +245bps -2bps RR> FORWARD RATE AGREEMEN T 3x6 6x9 9x12 3M interban k Czech Rep 0.95 1.05 1.20 0.90 <PRIBOR= > Hungary 0.07 0.10 0.18 0.03 Poland 1.73 1.75 1.76 1.70 Note: FRA are for ask prices quotes ************************************************* ************* (Reporting by Sandor Peto, Editing by William Maclean)