November 16 (SeeNews) - Romania on Thursday rejected all bids in a 400 million lei ($102 million/86 million euro) auction of Treasury notes due on February 25, 2019, central bank data showed.
Demand in the auction amounted to 687 million lei. The issue will be reopened on Friday when the finance ministry hopes to raise 60 million lei in a non-competitive tender.
At the latеst auction of government securities of the same issue held in October, Romania rejected all bids.
All six Romanian debt tenders in October were cancelled due to low market liquidity. The ministry had planned to raise 2.44 billion lei last month.
Details on the issue follow:
Auction date |
November 16 |
October 5 |
Amount offered (mln lei) |
400.0 |
400.0 |
Amount sold (mln lei) |
- |
- |
Total bids placed (mln lei) |
687.0 |
424.5 |
Bid-to-cover ratio |
1.72 |
1.06 |
Yield (%) |
- |
- |
Romania's finance ministry plans to auction 2.7 billion lei worth of government securities and to sell an additional 330 million lei in non-competitive offers in November.
At the end of October, Romania's finance ministry said it had a comfortable funding buffer and a plan to meet the country's financing needs for the rest of the year, despite the failed auctions last month.
The ministry added that it has rejected the offers placed by the primary dealers in October amid a temporary rise in money market interest rates, which has also influenced yields on government securities.
The ministry also said that it has largely covered the financing needs forecast for the year, by 'prudently' implementing the 2017 funding plan through uniform distribution of borrowing throughout the year in order to avoid accumulation of very high funding needs over short periods of time.
So far this year, the ministry has sold some 38 billion lei and 340 million euro worth of government bills and bonds and has tapped foreign markets for 2.75 billion euro of 2027 and 2035 Eurobonds.
The ministry has said it planned to sell some 48-50 billion lei worth of leu-denominated domestic debt this year.
(1 euro=4.6387 lei)