Romania’s Treasury bonds for households keep yielding real positive gains

Romania’s Treasury is launching new Fidelis issues of bonds dedicated to retail investors, paying 4% for euros and 6% for local currency on the 1-year maturity, coupons likely to result in real ex-post positive gains given the current inflation expectations.

The real gains cannot equal those expected by less risk-averse investors willing to place their money on the Bucharest Exchange but are certainly above the deposit interest rates paid by the banks that are experiencing an abundance of available resources compared to the limited lending opportunities.

For longer maturities, the Treasury is paying 5% for the bonds issued in euros with a 4-year maturity and 6.85% for the bonds denominated in local currency with a 3-year maturity. There is a 1pp bonus on the one-year local currency bonds for the blood donors.

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