MFP rejects banks’ offers for state bonds

The Ministry of Public Finance (MFP) yesterday rejected – for the first time in the last five months – the banks’ offers for Treasury certificates maturing in a year, considering that the demanded yield was too high, Mediafax reports. In total, banks subscribed state bonds worth RON 1.504 bln, exceeding the indicative value of RON 900 M. The last time when MFP rejected offers for state bonds was on March 3, when it attempted to sell bonds maturing in July 2013. Some dealers expected to see during the Monday auction an increasing yield of approximately 6.8-6.9 pc a year, given the yields that are usual for this type of bonds on the secondary market – over 6.75 pc – and the international context that resulted in higher financing costs. The next auction is set for Thursday, when the Treasury wants to sell bonds maturing in 10 years, worth RON 400 M.

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