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.

The yield for five-year bonds increased to 7.75% from 7.22%, while the yield for 10-year bonds neared 8%.

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%.

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%.

Romania plans to tap the foreign markets with an FX bond as soon as the end of January, according to finance minister Barna Tanczos.

Romania's public financing policy came under pressure after Fitch cut the outlook on the country's fragile BBB- rating in December. 

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.

iulian@romania-insider.com

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