Romanian Treasury issues bonds to population, yield curb steepens
Romania’s Treasury will issue bonds with maturities of one, two and three years to households in February under the Tezaur scheme – which includes bonds not listed at the Bucharest Stock Exchange (BVB).
The yields proposed by the Treasury are in line with the steepening yield curve and consistent with more positive sentiment among investors regarding economic growth and the profile of disinflation this year.
Compared to November, when the previous issue under this scheme took place, the yield for the one-year maturity dropped from 8.7% to 7.2%. The yield paid by Treasury is thus in line with the 8% (7.2% after-tax) interest paid by some banks, such as UniCredit Romania and even lower than the 9.3% (8.37% after-tax) promised by TBI Bank for the one-year maturity.
For the two-year maturity, the Treasury will pay in February a yield of 7.5% – 1.65pp, down from 9.15% in November. TBI bank promises 9.0% (8.1% after-tax).
The Government is still ready to pay 8% for three-year financing (a tenant not available in November under the Tezaur scheme), in line with the yield offered in the Fidelis issue (BVB-listed bonds) last December and above the 7.65% after-tax interest promised by TBI.
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