The report notes that yields may also be pushed down by good liquidity on financial markets.
“Investor interest in RON Government securities (short- and long-term) increased over the past weeks. As a result, the Finance Ministry paid lower yields to raise debt in the primary market but also borrowed larger amounts. Yields fell in the secondary market as well,” the analysis shows.
The Romanian fiannce ministry sold Monday one-year treasury bills for 800 million lei (EUR1=RON4.2669), at an average yield of 6.81%, 10 basis points lower than in the previous similar auction.
“We see more room for yields to decline in the coming period. Accordingly, we extend our recommendation on RON government securities from buy RON T-bills to buy all RON government securities (T-bills and T-bonds),” Raiffeisen also said.