Snaps
10 July 2019

Briefing Romania

Romanian government bonds to benefit from below consensus June CPI 

Romania_in_Europe.jpg

 - Source: Reuters
Source: Reuters

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%.

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