Presidential elections create restlessness among investors. In this context, risks from the elections are leading the Romanian authorities to consider accelerating the Eurobond sale. Thus, the government plans to sell at least EUR 1 billion of Eurobonds before the November 2 ballot, Minister delegate for Budget Darius Valcov said in an interview as bloomberg.com informs.
This although the sale was previously scheduled by year-end, according to Finance Ministry’s deputy head of Treasury, Diana Popescu, comments made earlier this month.
With opinion polls showing Prime Minister Victor Ponta set to win the vote, speculation is growing that a successor government will face difficulties controlling the deficit, presenting a risk to Romania’s bond rally, according to Erste Group Bank AG. While the debt has returned the most in emerging Europe this year, the securities have gained 0.3 percent in dollar terms since the end of August, lagging returns of at least 0.7 percent for Poland, Russia and Hungary, Bloomberg indexes (BEMS) show.
The yield on Romania’s euro-denominated bonds maturing April 2024 were little-changed at 2.71 percent by 10:19 a.m. in Bucharest, near a record 2.66 percent reached seven weeks ago. The country’s local-currency 10-year bonds yielded 4.08 percent, the lowest since July 29 on a closing basis.
“From the issuer’s point of view, now’s a very good time,” Krzysztof Izdebski, a fixed-income money manager at Union Investment TFI mutual fund said by e-mail. “The market is still in a very bullish mode.”