Snaps
23 November 2018

Briefing Romania

Carry on

RomaniaBriefing.jpg

 - Source: Reuters
Source: Reuters

EUR/RON

The appreciation bias for the Romanian leu continued into yesterday's trading session as the EUR/RON closed below 4.6600 on above-average turnover. Being long RON likely looks appealing for some as funding rates seem to be entering another bumpy road for a few days, at least.

Government bonds

The February 2025 auction met good demand yesterday, with a 2.20x bid-to-cover, though yield-wise it came out slightly above our call at 4.61% average and 4.63% maximum. The Ministry of Finance sold the planned RON300 million of debt without upsizing. The secondary market continues to trade mixed, with no clear direction.

Money Market

Cash rates continued their latest impressive performance, with the overnight rate closing the day at the same rate as the deposit facility. With some of the monthly budget payments due today and likely some on Monday, a few days of caution should follow. And of course, the central question remains: repo or no repo.

 - Source: Reuters, ING estimates
Source: Reuters, ING estimates

 - Source: Reuters, Bloomberg, ING
Source: Reuters, Bloomberg, ING