Tuesday, December 15, 2009

Romania sells 622 mln lei in 6-month Tbills

BUCHAREST, Dec 14 (Reuters) - Romania sold a less than planned 622 million lei ($214.4 million) in 6-month treasury bills on Monday, hurt by poor liquidity and weak interest in the finance ministry's self-imposed 10 percent cutoff yield.

The finance ministry, which had planned to sell 1 billion lei, has said it will not go for yields higher than 10 percent, as it has in recent months, despite large funding needs and upward pressure due to Romania's political and economic crises.

"Market liquidity is bad and forward rates are higher, so it is not worth going for the 10 percent yield," said a trader in Bucharest.

Incumbent President Traian Basescu narrowly won the Dec. 6 presidential election, but his leftist challenger Mircea Geoana has contested the outcome at the Constitutional Court, extending a political standstill that has already delayed badly-needed funds from the International Monetary Fund.

The Washington-based lender sent a team of experts to Bucharest on Monday for a three-day technical mission to discuss 2010 budget plans. It said it could resume the deal in January once a new government is installed and a cost-cutting 2010 budget is approved.

So far this year, the finance ministry has sold almost 63 billion lei in local currency debt issues, five times more than in 2008 as it struggles to plug a gaping budget shortfall. Series: RO091OCTN1B1 Settlement date: 16/12/2009

Auction date 14/12/2009 16/11/2009
Avg. yield 10.00 10.00
Avg. accepted price 95.1871 95.1871
Highest accepted yield 10.00 10.00

Tail (highest accepted
yield minus the average yield) 0.00 0.00
Total bids 1.610 bln lei 1.200 bln lei
Allotted 622 mln lei 265 mln lei
Bid-to-cover ratio 2.59 4.52

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