Briefing Romania
Romanian government bonds to benefit from below consensus June CPI
EUR/RON
The EUR/RON inched higher yesterday, closing regular hours just below 4.7300. Range for today: 4.7250-4.7350.
Government bonds
The ROMGB yield curve inched a bit higher with 10-year yields ending a couple of basis points higher and closing around 4.60% mid. June CPI came in at 3.8% year-on-year vs the 4.0% Bloomberg median and 3.7% ING forecast. Our forecast error was due to rounding. With June CPI missing the consensus estimate, we expect ROMGB yields to move a bit lower today. Yesterday, Romania sold EUR1.4 billion in new 12Y Eurobonds at MS+185bps and EUR0.6bn in 2049 papers at 3.4% on international markets.
Money market
Cash rates traded around 2.00% yesterday. Implied yields in the 6 month-12 month segment saw some selling pressure likely reflecting re-pricing of the NBR's liquidity management. The 12M mid-rate stood around 3.30%.
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
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