Snaps
16 December 2019 

Briefing Romania

RON500 million for sale in Sep-2031 auction

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EUR/RON

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.

Government bonds

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

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.

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