Snaps
6 December 2018 

Briefing Romania

The Ministry of Finance auctions September 2031 bonds

RomaniaBriefing.jpg

 - Source: Reuters
Source: Reuters

EUR/RON

Another quiet day for the EUR/RON closing around 4.6550 on low turnover. With a negative mood prevailing on global stock markets, we could see the currency pair testing the upper bound of the recent 4.6500-4.6600 range today.

Government bonds

Selling interest emerged in the ROMGBs market, likely related to profit-taking after the recent rally. As a result, yields closed c.4-7 basis points higher across the curve. The Ministry of Finance auctions RON300 million today in September 2031 bonds. This is a rather illiquid paper, and MinFin could sell less than planned as demand is likely to be limited. Average yields could print near secondary market mid of 5.30%.

Money Market

The funding rates traded below the key rate level of 2.50% yesterday as liquidity is returning from state budget spending. The rest of the money market curve was unchanged.

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

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