Briefing Romania

We saw sideways trading yesterday in EUR/RON around the 4.7600 level on thin volumes. And pretty much the same is expected for today, despite recent gains posted by regional peers against the single currency.

The government bont yield curve was little changed, with the market already in Easter holiday mood. The 10Y yield stood flat at 4.95% mid.

Funding rates stood unchanged at around the 3.35% mid implied yield. Some paying interest emerged up to two weeks, pushing yields some 30-35 basis points higher on expected large budget payments and holiday funding distortions ahead of a large 29 April bond redemption. The rest of the curve was little changed but still inverted with 3M at 4.25% and 1Y at 4.10% mid implied yields.