2010.09.2009:54:00UTC+00Romania Sells Nearly All Six Month Debt Issue At 7pct Yield Cap

News

• Romania sold nearly all of its planned 1 billion lei in six-month treasury bills at its 7 pct yield cap but the sale failed to ease fears it is heading for a funding crunch. Cbank
• An unstable political situation that threatens IMF mandated reforms and rising inflation expectations have increased upward pressure on yields since early May.
• Data showed the ministry sold 912 million lei ($280 million) of the six-month paper, an improvement from a similar tender earlier this month.
• Short-term issues are adding to an already costly bill later this year and in the first part of 2011 and analysts said that the ministry faces a funding crunch in November when yields could jump by up to 1 percentage point.
• So far this year Romania has sold some 27 billion lei.