November 20 (SeeNews) - Romania sold on Monday 200 million lei ($51 million/43 million euro) worth of Treasury notes maturing on June 11, 2021, in line with target, central bank data showed.
The average accepted yield was 3.68%, up from 2.31% achieved at the last auction of government securities from the same issue held in May, the data indicated.
Demand for the T-notes, which carry an annual coupon of 5.95%, was 435 billion lei on Monday, compared to 1.7 billion lei in the May auction.
The issue will be reopened on Tuesday when the finance ministry hopes to raise 30 million lei in a non-competitive tender.
Details on the issue follow:
| Auction date |
November 20 |
May 25 |
| Amount offered (mln lei) |
200.0 |
500.0 |
| Amount sold (mln lei) |
200.0 |
500.0 |
| Total bids placed (mln lei) |
435.0 |
1,713.4 |
| Bid-to-cover ratio |
2.18 |
3.43 |
| Yield (%) |
3.68 |
2.31 |
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.
The ministry rejected all bids placed in six auctions of government securities last month. The ministry originally planned to raise 2.44 billion lei last month.
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=4.6469 lei)