Romania’s Bond Rally Gathers Pace With Rating Risk Reduced

Investors in Romanian sovereign bonds are welcoming long-awaited measures to curb the budget deficit, with the reduced risk of a credit-rating cut likely to extend a rally in the country’s debt securities.

The Black Sea nation’s new government on Wednesday unveiled a broad package of spending cuts and tax increases to rein in the European Union’s widest fiscal gap. The government plans to present the measures, which include raising the value-added tax and cuts in public sector wages, at next week’s meeting of EU finance ministers.