BUCHAREST: Romania rejected all bids at a tender to sell one-year treasury bills on Monday after seeing yields jump at previous debt auctions this month driven by market jitters over the euro zone's debt woes.
It is the second failed debt tender this year after debt managers rejected all bids for three-year paper in early March.
The finance ministry, which capped yields and routinely rejected all bids at tenders throughout the second part of 2010, had planned to sell 900 million lei ($304 million) on Monday. The paper traded on the secondary debt market at around 6.75 percent.
At a previous auction for one-year paper on August 16, the ministry sold its planned amount but at an average yield of 6.64 percent, 30 basis points higher than at an early August tender. So far this year, Romania has sold roughly 37.6 billion lei in bonds and bills on the domestic market.
Copyright Reuters, 2011
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