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CEE MARKETS-Forint hits five-week low, Hungarian bonds ease on Turkey

* Lira's fall still weighing on CEE currencies * Forint at five-week low, Hungarian bonds sold at higher yields * Hungarian bond yields rise after well-bid auction (Adds Hungarian bond auction results, trader comment, incoming Slovenian government) By Sandor Peto and Jason Hovet BUDAPEST/PRAGUE, Aug 30 (Reuters) - The forint weakened to a five-week low against the euro on Thursday as the Turkish lira's slide continued to pose a threat to Central Europe's currency markets.

Hungary sold 87 billion forints worth of government bonds at an auction, where three- and five-year debt drew strong demand, almost 50 percent more than originally planned.

The bonds were sold at yields 10 to 15 basis points lower than in a sale two weeks ago, but yields rose after the auction.

Ten 10-year bondsr, which drew lower demand after having been bought in the secondary market for days, saw the biggest rise. They traded at 3.46 percent at 1235 GMT, up 10 basis points.

"The Turkish weakening could be behind the (post-auction) selling," one Budapest-based fixed income trader said.

The region's economies do not have strong trade and financial links with Turkey and have much better current accounts, but risk aversion on other emerging markets often reaches them.

The leu eased 0.2 percent to 4.6435 against the euro by 1248 GMT, retreating from Wednesday's three-week highs.

The forint shed 0.14 percent. The zloty and the Czech crown eased by less than 0.1 percent.

Czech government bond yields edged up by 2 to 4 basis points, with the 10-year bond trading at 3.14 percent.

The Czech central bank is expected to keep raising interest rates to fight a rise in inflation above its 2 percent target. But the higher rates have not helped the crown.

The Czech currency's weakness during the Turkish lira's sell-off and still-strong Czech wage growth, make many analysts believe the central bank could raise rates for a third time in a row at its September meeting.

Komercni Banka on Thursday changed its next rate hike call to next month from November.

"Given strong core inflation, a weak koruna and the prospect of sound wage growth, we change our CNB call and add a September hike to our outlook," it said in an analysis.

"We still believe that there will be one more hike in November and three hikes in next year," the note said.

The region's main equity indices mostly dropped, led by Warsaw's 0.8 percent decline, as worries over the U.S.-China trade war weighed on sentiment in global stock markets.

Ljubljana bucked the decline, gaining 0.3 percent.

Slovenia's incoming government coalition said on Wednesday that it planned to run a balanced budget.

"The (coalition) agreement boosts prospects for more privatisations which should help the government to get rid of the state assets and boost fiscal performance which should be credit positive for its sovereign rating," Raiffeisen analyst Gintaras Shlizhyus said in a note.

CEE SNAPSHOT AT MARKETS 1457 CET CURRENCI ES Latest Previous Daily Change bid close change in 2018 Czech Hungary Polish Romanian Croatian Serbian Note: calculated from 1800 CET daily change Latest Previous Daily Change close change in 2018 Prague 1077.67 1078.850 -0.11% -0.05% 0 Budapest 37159.50 37234.86 -0.20% -5.63% Warsaw 2362.01 2380.68 -0.78% -4.03% Bucharest 8333.95 8332.93 +0.01% +7.48% Ljubljana <.SBITOP 867.76 865.06 +0.31% +7.61% > Zagreb 1821.09 1824.65 -0.20% -1.18% Belgrade <.BELEX1 731.97 735.68 -0.50% -3.66% 5> Sofia 630.99 630.41 +0.09% -6.86% BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year 5-year 10-year Poland 2-year 5-year 10-year FORWARD RATE AGREEMEN T 3x6 6x9 9x12 3M interban k Czech Rep 1.84 1.96 2.05 1.49 (PRIBOR= ) Hungary 0.47 0.65 0.87 0.17 Poland 1.75 1.80 1.83 1.71 Note: FRA are for ask prices quotes ************************************************* ************* (Reporting by Sandor Peto, editing by Larry King)