Tuesday, October 6, 2009

Romania rejects all bids in 6-mo Tbills tender

BUCHAREST, Oct 5 (Reuters) - Romania rejected all bids at a tender to sell six-month treasury bills on Monday, indicating yields were may have been too high, central bank data showed.

At a previous tender on Sept. 28, the average accepted yield stood at 9.97 percent. On Monday, the finance ministry had planned to sell 1.1 billion lei.

So far this year, Romania has sold about 55.5 billion lei in local debt issues, about four times more than in 2008, as the ministry struggles with massive funding needs.

However, in recent weeks it rejected all bids at several tenders, and used hard currency reserves mainly from commercial loans and international aid to cover its needs.

Yields have eased from as much as 14 percent at the start of 2009.

Romania plans to sell 6 billion lei worth of local debt in October, up from the 4.1 billion lei it sold in September, central bank data showed last week.

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