Tuesday, May 19, 2009

Romania sells 520.5 mln lei in 30-day T-bills

BUCHAREST, May 18 (Reuters) - Romania sold 520.5 million Romanian lei in one-month treasury bills on Monday, with the average accepted yield at 10.51 percent, against 11.48 percent at a previous tender on April 21, central bank data showed.

The finance ministry has cranked up domestic issuance this year, selling around 31 billion lei so far, from last year's 12.5 billion lei, as the government struggled to meet vast spending needs and settle massive 2008 invoices.

Romanian treasury yields jumped to as high as 14 percent in January when market sentiment took a dramatic dive, but have held virtually flat at about 11.50 percent across the curve since February.

They started to ease slightly earlier in May, as investors took a kinder look at Romania, after it secured a 20 billion euros IMF-led loan package to underpin markets.

Analysts have also said a 50 basis points cut in interest rates to 9.5 percent by the central bank earlier this month has helped lower yields. Series: RO0909CTN0I1 Settlement date: 20/05/2009 
Auction date 18/05/2009 21/04/2009
Avg. yield 10.51 11.48
Avg. accepted price 99.1313 99.0524
Highest accepted yield 10.74 11.50

Tail (highest accepted yield 
minus the average yield) 0.23 0.02
Total bids 1.773 bln lei 2.232 bln lei
Allotted 520 mln lei 1.899 bln lei
Bid-to-cover ratio 3.4 1.18

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