Banks offered RON1 billion at today’s auction, but the ministry rejected all yields above 6.15% a year.
Last week, the ministry rejected all bids at a RON400 million two-year bonds auction, citing unacceptable yields.
Market participants said local lenders are less inclined to invest in government paper following the central bank’s decision to cap the amount offered at its weekly repurchasing operations.
Romania sold debt at increasingly lower yields in the first months of 2012, but the trend reversed as the central bank halted a monetary easing cycle, citing uncertainties on external markets and political developments at home.
The country expects to sell RON2.5 billion in debt this month, up from RON1.5 billion sold in July.
So far in 2012, Romania sold RON38.93 billion in leu-denominated state notes and $2.25 billion in US dollar-denominated bonds. (EUR1=RON4.5307)