March 13 (SeeNews) - Romania on Monday rejected all bids in a 300 million lei ($70 million/ 66 million euro) auction of Treasury notes due on April 29, 2024, central bank data showed.
Bids were placed for a total of 288 million lei worth of government paper.
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 February, the finance ministry sold the planned amount of 300 million lei.
On March 9, Romania also rejected all bids in a 600 million lei auction of Treasury notes due on February 26, 2020.
Ahead of Monday's auction, ING Bank analysts estimated that the issue does not benefit from a healthy backdrop. "It is not the most liquid ISIN and, given heightened domestic and global uncertainties, demand might be skimpy; moreover, as the finance ministry might not want to pay up the market, as we have seen recently, we could end up with a failed auction or a partial allocation," ING analysts said in a daily comment on the financial markets on Monday morning.
Details about the issue follow:
Auction date |
March 13 |
February 16 |
Amount offered (mln lei) |
300.0 |
300.0 |
Amount sold (mln lei) |
0 |
300.0 |
Total bids placed (mln lei) |
288.0 |
466.0 |
Bid-to-cover ratio |
0.96 |
1.55 |
Yield (%) |
- |
3.51 |
Romania's finance ministry plans to auction 3.7 billion lei worth of in government securities in March, according to the debt issuance calendar for the month. The ministry also plans to sell an additional 375 million lei of government paper in non-competitive offers.
In February, the finance ministry sold 3.32 billion lei in domestic debt paper and an additional 315 million lei in non-competitive offers, below its initial target of 3.9 billion lei.
So far this year, the finance ministry has sold some 7.5 billion lei worth of leu bills and bonds.
At the beginning of March, the ministry said it plans to sell about 2.5-3.0 billion euro ($2.6-3.1 billion) worth of eurobonds on the international markets and some 48-50 billion lei worth of leu-denominated domestic debt this year.
(1 euro=4.5538 lei)
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