Snaps
21 October 2019

Briefing Romania

June 2024 auction in sight

Romania_in_Europe.jpg

 - Source: Refinitiv Datastream
Source: Refinitiv Datastream

EUR/RON

The Romanian leu closed the week remarkably stable in the same 4.7500-4.7600 range. It is likely that it will continue in a similar fashion as we move into the current week while at the same time becoming more of a buy-on-dips story.

Government bonds

Little to none action on the fixed income side, having only the primary auctions to spice-up the market these days. Today, the Ministry of Finance plans to sell RON500 million in June-2024. The market mood remains volatile due to Brexit uncertainties but we should see the auction filled around 3.85%.

Money market

After hitting the 1.50% deposit facility last week, funding rates should see a small uplift today following central bank deposit auction. Due to the auction’s inconvenient settlement dates which cover the budget payments period as well, we don’t expect much demand for it.

 - Source: Refinitiv Datastream, ING estimates
Source: Refinitiv Datastream, ING estimates