Finance Ministry sells one-year bonds at RON 474 M

The Ministry of Public Finance (MFP) sold, yesterday, Treasury bonds with one year maturity term at RON 474.65 M, below the estimated value, of RON 800 M, at an average yield of 7 per cent a year, very close to the yield of the preceding bid for such bonds, of 6.99 pc, Mediafax informs. The highest yield which MFP will pay for the bonds sold on Monday is, also, 7 per cent a year and the demand for bonds from banks amounted to RON 1.438 bln.

Yesterday's bid is the first such operation organised in August, when the Finance Ministry proposed to draw RON 4.6 bln (EUR 1.1 bln) from banks by issuing state bonds, a similar amount to the July target. To cover the liquidity deficit, the ministry sold, last week, on July 28, Treasury bonds in EUR, maturing in one year, worth EUR 1.213 bln, three times above the estimated value, of EUR 400 M, at a yearly interest of 4.9 per cent.

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