Tuesday, February 9, 2010

Yields down at Romanian 1-yr T-Bill tender

BUCHAREST, Feb 8 (Reuters) - Romania sold a planned 500 million lei ($165 million) in one-year treasury bills at an auction on Monday that was oversubscribed while yields fell nearly 150 basis points, in line with market expectations.

Analysts have said investors still covet Romanian debt, as yields remain high for the region, although they have fallen significantly across maturities from a flat 10 percent level seen for most of the fourth quarter of 2009.

On Monday, the average accepted yield was down to 7.48 percent, from 8.86 percent at a previous tender on Jan. 18, central bank data showed.

So far this year, the finance ministry has sold roughly 7 billion lei, but it has lowered February issuance plans as the resumption of Romania's 20 billion euro aid package led by the International Monetary Fund has eased budget funding concerns.

The Fund's decision to free up as much as 3.3 billion euros in IMF and European Commission funds this quarter has also provided support for the currency and interest rates.

Romania did not disclose a full issuance figure for 2010. The ministry has said it plans to sell 10-12 billion lei in treasuries in the first quarter, and issue a Eurobond worth roughly 1 billion lei.

It sold 65 billion lei worth of paper last year.

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