Snap18 April 2019Updated 9 seconds ago

Briefing Romania

June 2024 auction in sight

Reuters
Reuters

EUR/RON

The EUR/RON continues its range trading around 4.7600. With the holiday mood has already entrenched, we don’t expect a different story for today.

Government bonds

The primary market auction is the highlight of a quiet period in the Romanian government bond market. Today, the Ministry of Finance plans to sell RON400 million in Jun-2024 bonds. The tenor is in-between the offshore demand, which is usually focused on longer tenors and demand from local investors which is concentrated on shorter maturities. Hence, we could see some partial allocation in the 4.50-4.55% area.

Money market

It's the same story on the money market with the market pricing quite a hefty liquidity premium for the beginning of the next reserve period. The overnight implied yield remains just below the 3.50% Lombard rate.

Reuters, Bloomberg, ING
Reuters, Bloomberg, ING

Reuters, ING estimates
Reuters, ING estimates