Snaps
12 September 2019 

Briefing Romania

EUR/RON nearing 4.7400

Romania_in_Europe.jpg

 - Source: Reuters
Source: Reuters

EUR/RON

The EUR/RON continued to slowly inch upwards, closing above 4.7350 on below average turnover. For today we expect a 4.7300-4.7400 range with upside bias.

Government bonds

The slightly better-than-expected inflation data didn't exactly send shockwaves through the fixed income market, with ROMGBs closing almost flat versus the previous day. Today’s RON600 million Aug-2022 auction should attract good demand as the tenors suits a broad range of investors. We expect an average allocation towards the lower end of the secondary market levels of 3.41%. Otherwise, the market will likely wait for the outcome of the European Central Bank meeting today.

Money market

Cash rates traded with a slight softening bias, but not materially departing from the 2.50% key rate. We expect the same stance for the days to come.

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