Demand for Romanian state bond issue to households weakens as expected inflation rises

Subscriptions under the November 2025 issue under the Fidelis government bond scheme were the weakest in the last six months, signalling a moderation in investor appetite for this form of savings. The state raised only RON 1.3 billion (EUR 260 million), of which approximately two-thirds came from tranches denominated in euros, Ziarul Financiar reported.

The investors’ interest weakens as the Treasury pressures for lower borrowing cost (coupons) while the expected inflation is slightly rising.

Analysts suggest retail investors are increasingly looking to place their portfolios with the Bucharest Stock Exchange, which has demonstrated outstanding performance: the main index BET rose by 33% y/y, and including the dividends, the gain reached 40% y/y.

Romania’s Treasury announced lower coupons for the local currency and foreign currency bonds sold to households in November under its two schemes, Tezaur and Fidelis, after it announced that the cost of borrowing (10-year) dropped under 7% for the first time this year.

The coupons attached to the bonds sold to households have decreased as well.

Thus, the government will pay 7.7% for the 6-year local currency bonds in November, down from 7.9% in August-October and 7.95% in June-July. The coupon for the 4-year local currency bonds also dropped to 7.35% from 7.6% while for the 2-year maturity, the coupon was cut to 6.95% from 7.20%.

For the bonds denominated in euros, the Treasury will pay 6.3% for the 10-year maturity, down from 6.3% in October. The coupons for the 5-year maturity dropped to 5.0% from 5.25% while that for the 3-year maturity decreased to 3.9% from 4.15%.

(Photo source: Facebook/Bursa de Valori Bucuresti)