Ministry of Finance borrows RON 500 mn through the issuance of 1-year T-bills
Yesterday, the Ministry of Finance borrowed approx. RON 500 mn through the issuance of 1-year T-bills, matching the initial intended amount. The average yield stood at 6.33%, slightly higher than the average yield of 6.29% paid at the last similar auction at the beginning of the month, when the ministry borrowed RON 500 mn.
Securities Commission could be united with Insurance and Private Pension System Supervisory Commissions
According to a draft emergency ordinance issued by the Government, the local securities commission (CNVM), the Insurance Supervisory Commission (CSA) and the Private Pension System Supervisory Committee (CSSPP) could be taken-over in 2013 by a new entity, the Financial Supervisory Authority.
Romania: Inflation below expectations in November
Consumer prices were flat in November (+0.04% mom), while our expectations and market consensus were for an increase of 0.4% mom. The annual inflation rate fell to 4.6% yoy in November from 5% yoy in October.
Better than expected dynamics was mainly the result of leu appreciation which resulted in a fall of 0.8% mom in case of tariffs for phones, of decline in gasoline prices (prices for solid and liquid fuels fell by 1.5% mom), of decline in volatile food prices of fruits, vegetables and eggs (-2.5% mom based on our in-house seasonally adjusted data), and of flat non-food prices. Some of the shocks which pushed up rapidly inflation rate in July-September (jump in volatile food prices and leu depreciation) were reverted in October and November.
Annual inflation rate would probably be close to 4.7% yoy in December, while it would remain close to 5% yoy in H1 2013. This would be better than we, the market, and the central bank expected only one month ago (inflation close to 5.5% yoy). Lower than expected inflation should mitigate the upward pressure on money market interest rates and yields for Treasury securities.