Since the fall of 2024, the yields on government securities have been steadily increasing in the GS market, as a result of which the demand for GS began to grow, the volume of which began to exceed the amount of supply from the Ministry of Finance. Already in November the demand exceeded the supply by 11%, and in the first half of 2025 the excess of demand over the supply of GS amounted to 127%.
As experts note, the greatest growth in demand and yields came in annual securities, which account for about 70% of the total issue of GS. Thus, the volume of demand for 1-year GS at the June auction exceeded the demand, which was observed at the beginning of the year, 2 times, and 5 times compared to the last autumn. However, as the growth of yields stopped, the demand for GS also fell.
“At the auctions held in July, the volume of demand for SS was lower than the April volume by 25%, and the June volume – by 40%. As a result, in July the demand ceased to cover the supply by 22%, and actual sales – by 27%. This means that the government lost almost 1.4 billion lei in domestic borrowings,” says economist Vladimir Golovatiuc.
In 6 months of 2025, the weighted average interest rate on SS traded at auctions amounted to 8.90%. In July, the average nominal rate on two-year government bonds amounted to 6.90%, on three-year bonds – 7.10%.
