Snaps
5 June 2019

Briefing Romania

Stronger Romanian leu on inflows into government bonds

RomaniaBriefing.jpg

 - Source: Reuters
Source: Reuters

EUR/RON

The EUR/RON failed to close below 4.7300 yesterday on another day of heavy turnover. We see a 4.7250-4.7400 range for today with a downside bias as risk-on sentiment prevails after recent signals from Fed speakers.

Government bonds

The bull flattening in the ROMGB curve continued yesterday with long-end yields dropping by another 4-5 basis points.

Money market

Implied cash rates inched around 60 basis points higher to 2.85%. The forward yield curve flattened as 1y implied yields dropped around 10 basis points to 3.80%.

 - Source: Reuters, Bloomberg, ING
Source: Reuters, Bloomberg, ING

 - Source: Reuters, ING estimates
Source: Reuters, ING estimates