Briefing Romania
Liquidity surplus remained generous in October
EUR/RON
The EUR/RON trading range remained unchanged yesterday, despite the increased turnover. Not much should change today as we look for the same 4.7500-4.7600 range to hold.
Government bonds
The investiture of a new government seems to have triggered some mild buying interest for ROMGBs, though the overall curve shifted just one to two basis points lower. Today the Ministry of Finance will tap the local market with a euro denominated paper worth EUR200 million. We expect it to be well received by the market with the final yield much dependent on MinFin’s latest propensity for upsizing the allocation.
Money market
Cash rates remain just below the 2.50% key rate. The central bank’s monthly bulletin for October indicated the surplus liquidity standing at around RON5 billion. Given that we expect the budget deficit to meaningfully exceed 3.00% of GDP, heightened MinFin’s financing needs could create some liquidity squeeze towards the year-end.
This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more
Download
Download snap