The yields paid by Romania’s Treasury on the bonds sold to households under the Fidelis issue (bonds not listed at the Bucharest Exchange but with a put option) increased again in the May issue after they had declined for two consecutive months in March and April from a peak level reached in February.
The Treasury announced that it had sold government bonds with a total value of RON 8 billion (EUR 1.6 billion) to households in three monthly Fidelis issues this year in February, March, and April.
For comparison, the volume of bills and bonds sold on the primary interbank market in the year to date reached RON 25 billion (EUR 5 billion).
Romania also sold FX bonds with a total value of EUR 6.75 billion in two episodes this year. While the issues of FX bonds were put on ice until after the presidential elections and a new episode of fiscal corrective measures, the sale of debt on the local market continues.
In May, between 9 and 16, Romanians will have the opportunity to buy government bonds denominated in local currency (RON) with maturities of 1, 3, and 5 years and coupons attached of 6.75%, 7.40%, and 7.80%, respectively.
The coupons increased by 15 basis points (bp) for the 1-year maturity compared to April – but remain below those paid by the Treasury in March (6.80%) or February (6.95%). The coupon attached to the 3- and 5-year bonds increased by 10bp and 20bp to 7.4% and 7.8%, respectively – also lagging behind those paid in March and February.
Regarding the bonds denominated in euros, the coupons attached to the May Fidelis issue increased by 25bp for each of the two maturities to 3.85% (2-year) and 6.25% (7-year). The coupon for the 7-year issue has returned to the peak value reached in February.
iulian@romania-insider.com
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