Briefing Romania
Liquidity is back
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.
This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more
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