The average yield accepted by the Romanian Treasury in the latest auction for three-year bonds rose to 7.7% on January 15 from 7.04% one month earlier.<\/p>\n
The yield for five-year bonds increased to 7.75% from 7.22%, while the yield for 10-year bonds neared 8%.<\/p>\n
Separately, the Treasury is selling RON-denominated bonds to households with yields of 7.0%-7.8% for maturities of 1, 3, and 5 years. The yield paid for the three-year maturity is 7.5%.<\/p>\n
The yields paid in December 2024 under a similar scheme (Tezaur) ranged between 6.45% and 7.6% for the same maturities of 1, 3, and 5 years. The yield paid for the three-year maturity in December was 7.25%.<\/p>\n
Romania plans to tap the foreign markets with an FX bond as soon as the end of January, according to finance minister Barna Tanczos.<\/p>\n
Romania’s public financing policy came under pressure after Fitch cut the outlook on the country’s fragile BBB- rating in December.\u00a0<\/p>\n
The government in Bucharest is expected to draft the 2025 budget planning with a 7%-of-GDP deficit target by the end of the month after the public gap reportedly reached 8.6% of GDP in 2024.<\/p>\n