Briefing Romania

The EUR/RON traded in a tight range yesterday on low turnover and closed just above 4.7600. The upside pressure in EUR/RON may persist as global uncertainties haven't disappeared and domestic politics are still unsettled. Still, we do not believe that NBR fixing, which is closely followed by local media, will print above its all-time high.. The Premier-designate may announce the cabinet lineup today.

A quiet day for the ROMGBs market yesterday with yields little changed as the market remains confused about the political outlook. 10Y yield was flat at 4.12% mid.

Cash rates traded through the NBR deposit facility yesterday with two days to go until the end of the reserve maintenance period. Pretty much the same is expected today, but the start of the new reserve period tomorrow should see cash rates rebounding towards or above the NBR key rate level.