Romania Briefing

The EUR/RON traded within 4.7400-4.7500 range yesterday and closed marginally higher on above average turnover. Same range is likely to hold for today with an upside bias ahead of S&P review.

ROMGBs yield curve was little changed yesterday. March issuance plan is targeting a relatively small amount of RON1.8bn in T-bonds and RON0.4bn in T-bills. The market will be eyeing S&P rating review later today. In the meantime, Bloomberg cited unnamed government official saying that the executive plans to amend the bank levy to de-link it from ROBOR, exempt certain assets from the tax base and impose it on biannual basis instead of quarterly.

Funding rates dropped c.30bps yesterday to around 3.3%. The rest of the curve inched higher despite a heavy redemption calendar in the first half of the year.