Romaniandomestic government bonds extended their decline after inflation accelerated to the fastest pace in two years on government measures designed to curb the budget deficit.
The yield on the 10-year sovereign notes jumped 6 basis points to 7.71%, rising for a fourth day and hitting the highest level since the mid-May selloff around the country’s presidential election.
“The inflation numbers exceeded consensus by a large margin and that is negative for bonds,” said Ciprian Dascalu, a Bucharest-based economist at Erste Group Bank AG. “We anticipate inflation will peak in September and believe there is a meaningful probability that ...
