Romania’s euro-denominated bond yields fell for the first time in a week on optimism Europe may resolve its debt crisis, boosting appetite for riskier assets, and the country raised more debt than planned this month.
Yields on Romania’s bonds denominated in euros and due 2018 declined five basis points, or 0.05 percentage points, for the first time since Sept. 14, to 4.785 percent by 5 p.m. in Bucharest today from 4.832 percent yesterday, according to data compiled by Bloomberg.
The Bank of Japan (8301) joined the Federal Reserve and the European Central Bank this week in pledging to add economic stimulus to boost growth. The Financial Times reported that Spanish and European Union officials are working on plans to trigger ECB bond purchases. Romania raised 4.54 billion lei ($1.3 billion) this month, compared with a plan of 3.3 billion lei, the biggest amount of debt sold on the domestic market since April when it raised 4.67 billion lei.
“The calmer domestic scenery and the more generous liquidity conditions, set against a favorable external backdrop, have recently been supportive of Finance Ministry debt tenders,” Roxana Hulea, a Bucharest-based analyst at BRD-Groupe Societe Generale SA (BRD), wrote in a note to clients today. “Debt managers have taken advantage of a more solid demand and softer yields and overshot the planned issuance calendar, heavily skewed towards short maturities.”
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