Snaps
29 March 2019 

Briefing Romania

Funding rates remain above Lombard

RomaniaBriefing.jpg

 - Source: Reuters
Source: Reuters

EUR/RON

The EUR/RON traded quite narrowly around 4.7600 for most of yesterday’s trading session and tested higher in the after-hours. We expect the upside pressure to persist today and look for a 4.7550-4.7650 range.

Government bonds

A relatively quiet day for Romanian government bonds, with most of the action concentrated in the recently issued Eurobonds. We expect the auction calendar for April-2019 to be released today and see some positioning on this news.

Money Market

As expected, the downward move in cash rates has paused ahead of the 3.50% Lombard rate and somewhat surprisingly, cash rates even inched 15-20 basis points higher yesterday. The curve is remarkably flat again, all tenors are trading within some 25 basis points, between 3.75% and 4.00%.

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

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