Briefing Romania

The Romanian leu remained trapped in a very narrow 20 pips range on Friday, closing just below 4.7800. We expect the same pattern to hold this week.

The highlight of the day will certainly be the Sep-2031 auction which targets a RON500 million issuance. The amount looks very high compared to previous issuances for this tenor, but ROMGBs are a volatile market these days and we could have a pleasant surprise here. Yield-wise, printing below 5.00% will be a challenge.

Money market rates have stabilised slightly below 3.00% in the front end. Hence, we don’t expect a great demand for today’s NBR deposit taking auction.