The ministry sold RON1.09 billion worth of 12-month treasury bills, at an average yield of 6.06%, down from 6.24% at the previous auction. The ministry planned to raise RON0.5 billion at the debt sale, and book orders amounted to RON1.7 billion.
At the second auction, the ministry sold RON1.06 billion in two-year bonds, at an average annual yield of 6.11%, lower than 6.44% it accepted in December. Banks offered to buy RON1.5 billion worth of paper, while the ministry targeted an indicative amount of RON0.8 billion.
Yields at Romania’s debt auctions entered a downward path after the parliamentary elections in December, which resulted in a clear victory for the ruling coalition. Investors’ risk perception on Romania improved in the past month, as the election cycle came to an end and a new government took office. On the other hand, Romania still offers yields above other countries in the region.
The finance ministry plans to sell RON4.6 billion debt in January.
In 2012, Romania sold treasury bills and bonds worth a total RON58.2 billion, 13% more than in the previous year. It also raised EUR763.3 million from the local market by tapping two existing foreign currency bonds, due 2014 and 2015, respectively.
Additionally, the country tapped international debt markets for $2.25 billion at two US dollar-denominated bond sales and raised another EUR2.25 billion via two Eurobonds.