Romania’s borrowing costs signal investor patience amid political crisis

Romania’s long-term borrowing costs eased in recent days despite the ongoing political crisis, suggesting investors continue to expect a relatively quick restoration of political stability and fiscal policy continuity. The local currency showed signs of stabilisation after 3% negative correction during the first days of political instability - in the broader context of significant strengthening over the past years, Profit.ro reported.

The yield on Romania’s 10-year government bonds fell below 7% on May 7 for the first time since mid-April, while recent Treasury auctions were heavily oversubscribed. The Finance Ministry sold 12-month Treasury bills on May 7 at an average yield of 6.11%, lower than the 6.35% recorded at a similar auction on April 22.