The government is actively lending on the domestic market, providing the financial sector with an opportunity to earn due to the growth of securities yields. Due to this, since the beginning of the year a significant increase in GS sales has been registered.
In March the average yield of GS amounted to 9.65%, and for annual securities – 9.93%. Compared to February, the average rate of GS yield increased by 1.6 p.p. As a result, sales exceeded February volume by 48%. In March, banks credited the government with 4 bln lei, having repurchased 70% of the invested amount from the previously issued securities.
According to economist Vladimir Golovatiuc, demand for SS significantly exceeded supply at all March auctions. “The Ministry of Finance did not experience difficulties with the placement of government securities. The demand for government securities was high, and part of the demand even remained unsatisfied. It mainly affected SS with longer maturity. Therefore, I believe that the demand for GS will remain high in the future as well. Since at recession in the economy the government has not only to lend, but also from time to time to adapt the supply to finance urgent budget expenditures. Decline in GS yields is already coming”, – the expert believes.
