Quite a calm session for the EUR/RON yesterday. The pair traded virtually flat around 4.6630 and we don’t expect major changes of the current calm stance.
The September 2031 bond auction went out pretty well, though the Ministry of Finance had to pay somewhat higher-than-expected yields in order to raise the RON200 million planned amount. In the end, the target size was allocated at a 5.46% average and 5.48% maximum yield, with a total bid-to-cover of 1.53x. The ROMGBs curve closed the day little changed.
It was a calm market on funding as well, with the entire curve now ranging from 3.00% to 4.00%. The money market is likely to remain calm ahead of Monday’s announcement for a possible repo.