Snaps
24 May 2019

Briefing Romania

Good Sep-31 auction 

RomaniaBriefing.jpg

 - Source: Reuters
Source: Reuters

EUR/RON

The EUR/RON traded in a tight 4.7580 – 4.7630 range on average turnover, closing near the lower end of the interval. Same trading range is likely for today.

Government bonds

The ROMGB yield curve was little changed yesterday. The Ministry of Finance sold RON320 million vs RON300 planned in Sep-31 bonds at an average/cut-off yield of 5.17%/5.25%, with the average below our expectation, but with quite a long tail.

Money market

Cash rate opens the new reserve period today around 2.75%, above the NBR key rate, with due payments to the state budget likely to be accommodated by the abundant liquidity backdrop.

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

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