Snaps
28 November 2018

Briefing Romania

Liquidity is back

RomaniaBriefing.jpg

 - Source: Reuters
Source: Reuters

EUR/RON

The EUR/RON tested above 4.6600 yesterday but the level is holding for now and we closed around 4.6570 on average turnover. While the lower carry could incentivise payers in EUR/RON, the upside potential looks as limited as ever to 4.6700 - for now.

Government bonds

The front end ROMGBs had most to gain from the better liquidity backdrop as yields fell as much as 10 basis points. Together with a slightly improved global risk sentiment this could keep the current trend afloat for a few days.

Money Market

Selling interest continued on the money market on improved liquidity conditions with most of the curve now trading inside the 2.50-3.50% corridor. We believe that the downward trend in rates is not likely to last long as the National Bank will be careful not to allow a persistent liquidity surplus in the market.

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

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