Failed Bond Auction Bug Goes Viral: Romania Rejects All Bids In 600 Million Lei Auction

Tyler Durden's picture

Earlier we predicted that the dirt in Eastern Europe is about to clog up Bernanke's liqduity swap Hoovermatic, but had no idea we would be proven quick so fast. Romanian website zf.ro reports that in a 600 million lei auction conducted earlier, the "Public Finance Ministry has rejected all bids submitted considering them an unacceptable level of offer price." In other words, the Romanian government now thinks it is Greece and it doesn't need money it finds too expensive. In yet other words, this means a failed auction. This follows the news of a semi-failed auction in Hungary earlier today, and a busted auction in Germany two weeks ago. Does anyone know if there is an iPad app that magically makes direct bidders appear whenever and whereever needed, leading to a 10x Bid To Cover at 0.00% for any bond auction? If Jobs can come up with that, we would immediately bet the concrete bunker on AAPL stock.

From Zf.ro:

The state rejected all bids submitted by banks to buy bonds on the three years in the auction which was intended to attract 600 million lei, considering too high yields required.

"Public Finance Ministry rejects all bids submitted considering them an unacceptable level of offer price, according to a release of the NBR, which acts as manager of primary market of government securities.

This is the second consecutive auction after the unrolled end of May, when Treasury fails to fall to deal with banks to bonds yield about three years.

Secondary market, bonds with maturity of three years is currently trading at yields of 7.5% -7.3%. The State last sold bonds on three years in April, at an average yield of 6.8% per year. Finance Analysts had expected to agree to pay a higher yield to make money.

h/t BlackSea