Bloomberg News

Romania’s Dollar Bond Yields Fall to Lowest in Two Weeks

March 05, 2013

Romania’s dollar bond yields slid to the lowest level in two weeks as the nation enters major emerging-market debt indexes in March and amid speculation central banks around the world will continue with measures to support economic recovery.

JPMorgan included three Romanian local bonds in its GBI-EM gauge on March 1, the U.S. bank said in an e-mail today. Eleven of the nation’s leu-denominated fixed-income securities are eligible for addition to a Barclays Plc measure, according to e- mailed comments from Societe Generale SA.

“Romania is on an upswing,” analysts at Societe Generale, led by London-based Benoit Anne, wrote in a research note. “We are positive on the leu and the bond market, given Romania’s inclusion into major bond indexes.”

The yield on 10-year bonds declined for a second day, down five basis points, or 0.05 percentage point, to 4.45 percent, the lowest level since Feb. 19, according to data compiled by Bloomberg. Yields on 2019 euro-denominated bonds fell four basis points to 4.038 percent.

Romania’s leu traded little changed at 4.3633 per euro by 1:45 p.m. in Bucharest. It has gained 1.8 percent this year, the second-best performance among currencies in eastern Europe and Africa.

European stocks rose to a 4 1/2-year high on bets of continuing stimulus from central banks around the world. European finance chiefs may next month commit to giving Ireland and Portugal more time to repay bailout loans, Economic and Monetary Affairs Commissioner Olli Rehn said yesterday. U.S. index futures and Asian shares also climbed.

Commodities rallied as China vowed to maintain its growth target at 7.5 percent for this year and plans a 10 percent jump in fiscal spending.

To contact the reporter on this story: Andra Timu in Bucharest at atimu@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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