Briefing Romania
Strong primary auctions continue
EUR/RON
The Romanian leu followed the same pattern as it has in recent days, in other words, it's almost at a standstill, just below the 4.7800 level. The turnover remained relatively low, and there's no reason to expect a different pattern today.
Government bonds
On the fixed income side, it’s all about the primary market auctions again. We had another strong result yesterday when the Ministry of Finance issued RON1.19 billion (versus an already impressive RON800 million target) at 3.89% average and 3.91% maximum yields. A very good auction in our view. In the same vein, MinFin announced yesterday that it plans to tap the external markets for EUR6 billion this year, above the EUR5 billion initial estimate. If successful, this will alleviate some of the worries regarding the relatively high monthly issuance needs to be financed from the domestic market.
Money market
The funding market remains very stable these days just above 2.50%. Yesterday’s NBR deposit auction garnered RON3.8 billion, slightly less than in the previous week, but still enough to suggest a good liquidity backdrop.
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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