Markets’ sentiment improves after political agreement reached in Romania

Banks also submitted bids totalling five times the target amount for a 36-month bond issue tapped by the Treasury on October 15.

The moves came as the main centrist political parties moved towards a political agreement that would pave the way for a minority government, five months after a successful no-confidence motion brought down the previous cabinet.

Yields on 10-year Romanian government bonds have also declined to 7.1-7.2%, after spiking to 7.75% on September 30, when Parliament rejected the second prime ministerial nomination.

However, the weighted-average yield on the 36-month bonds sold by the Treasury rose to 6.81%, from 6.54% in mid-September, when the same issue was last tapped.