The ministry plans to sell debt worth RON4.7 billion in September, up from roughly RON2.6 billion sold a month earlier.
“The appetite for financing will keep fuel the demand for higher yields. The ministry fell into its own trap and it will be very difficult not to pay higher yields,” ING said in a report.
The ministry had to pay increased yields during August, especially for short-term debt. The yield on one-year treasury bills rose to 6.64% in August, from 6.19% in the previous month.
At the latest one-year bills auction August 22, the ministry rejected all bids in a RON900 million sale, citing high yields. Likewise, the ministry rejected the offers in a RON500 million five-year bond auction September 1.
The next sale is scheduled for later today, when the ministry plans to sell RON1 billion in one-year paper.
According to ING estimates, Romania has attracted sufficient funds in the first eight months to cover the financing needs for the whole year.