March 27 (SeeNews) - Romania on Monday sold 240 million euro ($260 million) of Treasury notes maturing on February 26, 2021, above its target, central bank data showed.
The average accepted yield at the auction fell to 0.42% from 1.00% at a previous auction of government securities of the same issue held last year in March, the data indicated.
Demand for the T-notes, which carry an annual coupon of 1.25%, rose to 516.4 million euro from 329 million euro in March 2016.
Commenting ahead of Monday's auction, Raiffeisen Bank said that a good demand could be recorded at the auction. "Facing scarce opportunities to originate foreign currency (FCY) loans as lending in FCY has been modest in past years, banks should have plenty of unused FCY resources," Raiffeisen Bank analysts said in a daily comment on the financial markets.
Details about the issue follow:
Auction date |
March 27 |
March 10 '16 |
Amount offered (mln euro) |
200.0 |
250.0 |
Amount sold (mln euro) |
240.0 |
275.0 |
Total bids placed (mln euro) |
516.4 |
329.0 |
Bid-to-cover ratio |
2.58 |
1.31 |
Yield (%) |
0.42 |
1.00 |
Romania's finance ministry plans to auction 3.7 billion lei worth of 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 9.6 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=4.5500 lei)