Snaps
25 April 2019

Briefing Romania

Budget payments day

RomaniaBriefing.jpg

 - Source: Reuters
Source: Reuters

EUR/RON

EUR/RON followed the same pattern yesterday with a failed test lower at 4.7550, closing just below 4.7600 on above average turnover. Exporters will likely remain sellers of hard currency today to get Romanian leu to cover payments to the state budget, but 4.7500 is likely to hold.

Government bonds

The bull steepening trend continued in Romanian government bonds as buyers chased front-end yields lower ahead of a large April 29 bond redemption.

Money market

Cash rates remain above the National Bank of Romania credit facility due to payments to the state budget. The rest of the money market curve shifted lower on a large bond redemption that's expected to shift the liquidity backdrop to a surplus.

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

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