The last few days have brought about a significant increase in the volume of government bond transactions on the Bucharest Stock Exchange. Yesterday alone 0.5% of the total volume of government bonds with the October 2012 (symbol: B1210A) were sold, according to BSE data.
1,876 bonds issued on March 23 by the Ministry of Finance, (0.58% of the entire issue), were transferred as part of a special transaction, for a sum of 21.36 million lei, (5.1 million Euros). The unit price for the deal was 13.88% above the face value (10,000) of the bonds.
Since the beginning of the year, turnover in bonds exceeded 647 million lei, a threefold increase over 2008 (231 million lei).
The drop in interest rates for deposits has caused investors to turn towards fixed revenue instruments, increasing the attractiveness of government bonds that the BSE started one year ago.