Investors from Romania to Receive Higher Interest Rates on Purchased Government Bonds Next Month
Get ready to dive into the Romanian bond market! 📈🇷🇴
It's no secret that Romania's Treasury has been busy issuing government bonds lately, and they're not slowing down anytime soon! They've sold an astounding €1.6 billion worth of bonds to households in three Fidelis issues this year alone - that's quite a chunk of change! 💰
If you're wondering what Fidelis bonds are, they're unlisted bonds with a put option, meaning they can be bought back by the issuer before maturity, but don't trade at the Bucharest Exchange.
As for the yields on these Fidelis bonds, they've seen some ups and downs. After hitting a peak in February, they dipped in March and April, only to bounce back in May. The 1-year bonds now offer a coupon rate of 6.75%, while the 3- and 5-year bonds are at 7.4% and 7.8%, respectively. But don't worry, these rates are still competitive compared to the amount sold on the primary interbank market this year! 📊
Remember, these rates may not be set in stone for the upcoming May 2025 Fidelis issue. We'll have to wait and see what the Treasury has in store for us!
In the meantime, if you're itching to invest, mark your calendar for May 9-16, 2025! You'll have the chance to buy government bonds denominated in local currency with maturities of 1, 3, and 5 years, and coupons attached of 6.75%, 7.40%, and 7.80%, respectively. Keep an eye on those rates to make the most of your investment! 📈
[1] Source: Romania-Insider.com[2] Source: Romania-Insider.com[3] Source: Romania-Insider.com[4] Source: Romania-Insider.com[5] Source: Romania-Insider.com
(Photo credit: Iryna Drozd/Dreamstime.com)
- The Romanian Treasury has sold €1.6 billion worth of Fidelis bonds to households this year, with the next issue set for May 2025.
- The Fidelis bonds, unlisted and without trading at the Bucharest Exchange, have seen fluctuating yields this year.
- The 1-year Fidelis bonds offer a coupon rate of 6.75%, while the 3- and 5-year bonds have coupons of 7.4% and 7.8%, respectively.
- Investors interested in the May 2025 Fidelis issue should keep an eye on the yields to make the most of their investment.
