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Romania rejects all bids in 300 mln lei (66 mln euro) 2024 T-note auction

Romania rejects all bids in 300 mln lei (66 mln euro) 2024 T-note auction Romania's finance ministry

BUCHAREST (Romania), October 9 (SeeNews) - Romania on Monday rejected all bids in a 300 million lei ($77 million/66 million euro) auction of Treasury notes due on April 29, 2024, central bank data showed.

Bids for a total of 380 million lei worth of government paper were placed.

The issue will be reopened on Tuesday when the finance ministry hopes to raise 45 million lei in a non-competitive tender.

At the previous auction of the same T-note issue held in September, the finance ministry sold the planned amount of 500 million lei at a yield of 1.71%.

On October 5, Romania also rejected all bids in a 400 million lei auction of Treasury notes due on February 25, 2019.

Commenting ahead of Monday's auction, Raiffeisen Bank analysts anticipated that the auction could be a test for investor demand for Romanian government paper, given that at the previous public debt auction all bids were rejected.

"Given the large liquidity buffer, the public debt managers can easily choose to cancel a public debt auction when market conditions are deemed as unfavourable," Raiffeisen Bank said in a daily market report.

Details follow:

Auction date October 9 September 14
Amount offered (mln lei) 300.0 500.0
Amount sold (mln lei) - 500.0
Total bids placed (mln lei) 380.0 856.1
Bid-to-cover ratio 1.27 1.71
Yield (%) - 3.37

Romania's finance ministry plans to auction 2.2 billion lei worth of government securities and to sell an additional 240 million lei in non-competitive offers in October.

In September, the ministry auctioned 3.35 billion lei worth of domestic debt paper and an additional 405 million lei in non-competitive offers, slightly below target.

So far this year, the ministry has sold some 37.5 billion lei and 340 million euro worth of government bills and bonds and has tapped foreign markets for 1.75 billion euro of 2027 and 2035 Eurobonds.

In June, the ministry said it plans to sell 7.5 billion euro worth of Eurobonds on the international markets in the following two years.

This year, it plans to sell about 2.5-3.0 billion euro worth of Eurobonds on the international markets and some 48-50 billion lei worth of leu-denominated domestic debt.

(1 euro=4.5780 lei)

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