The Romanian State, through the finance ministry, was seeking to reopen a benchmark bond issue due in 2033, with a scheduled value of RON500 million and a coupon rate of 7.2% per year.
Six primary dealers participated in the auction and total demand stood at RON364 million.
The second auction targeted a discount treasury bill (T-bills) issue due in 2027, with a nominal value of RON500 million.
Seven primary dealers participated in the auction and total demand stood at RON862 million. The amount was entirely offered by the participating banks. The ministry decided to reject all bids, deeming the yield “unacceptable”.
The Romanian State also rejected the bids submitted by banks at the government paper auction held on Monday, March 9.
According to the regulatory framework for government bond market operations, the ministry can entirely reject the bids unless the prices offered by investors are deemed acceptable for the issuer.