Romania May Drop Yield Cap ‘Illusion’ as Funding Lags
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Romania may be forced to abandon its cap on borrowing costs as inflation accelerates and investors seek higher yields.
The European Union’s second-poorest country failed to sell three- and five-year bonds in August after investors demanded yields above the Finance Ministry’s 7 percent limit. The nation raised 3.85 billion lei ($1.2 billion) through sales of six-, nine-and 12-month Treasury bills, 16 percent less than its monthly funding target of 4.6 billion lei.