Falling yields on Romanian bonds after Brexit vote

Newsroom 09/09/2016 | 18:04

The yields of Romanian state bonds are decreasing since the beginning of this year, with slight fluctuations after the Brexit vote and have registered the biggest drop compared with Poland and Hungary bonds prior to Brexit, said Enache Jiru, state secretary at the Public Finance Ministry.

In his opinion, the yields evolution of Romanian bonds, but also of the ones of reference, was determined by the central banks’ policies.

According to him, the yields growth would have taken place anyway in the respective period even if Brexit hadn’t taken place, because “that is a period in which the liquidities are rearranged on regions.”

Jiru said that the yields evolutions of the 11-year bonds that were 4 percent before Brexit grew by 10-15 basis points after the vote and now stand at 3.15 percent per year, which represents a drop of approximately 25 percent compared with the level before Brexit.

He added that the investors’ interest in Romanian bonds has been maintained, citing the results of recent bond auctions.